The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
The ECB stimulus may weaken the EUR
The European Central Bank will announce its interest rate and publish the monetary policy statement on September 12, at 14:45 MT time. After that, the ECB president Mario Draghi will conduct a press conference at 15:30 MT time. The market is awaiting the stimulus package by the ECB. There are no doubts that the regulator is about to cut its interest rate. The main question is how big the rate cut is going to be. The announcement of a substantial stimulus and hints on more rate cuts soon will weaken the euro significantly. In addition, it is recommended to pay attention to the tone of the ECB president.
• If the ECB is hawkish, the euro will rise;
• If the ECB is dovish, the euro will fall.
Source of picture: Alexandros Michailidis / Shutterstock.com
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.
The overall market sentiment is mixed as investors await the Federal Reserve’s statement today at the evening.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…