The US dollar’s weakness offered a boost to emerging-market currencies and oil.
Trade euro on ECB comments.
The European Central Bank will announce the interest rate on October 25 at 14:45 MT time. At 15:30, the central bank will hold a press conference.
The euro has been under big pressure because of the Italy budget issue. Moreover, the strengthening of the USD doesn’t let the EUR/USD pair to rise.
Although the market is sure that the central bank won’t change the interest rate, the market is waiting for comments on the further tapering of quantitative easing. If the bank sees a possibility to move to tighter monetary policy, the traders will consider it as a good sign. However, there are risks of the dovish comments caused by threats on the financial markets.
• Positive comments will boost the EUR.
• Negative comments will pull the EUR down.
The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
The USD continues dipping, while the GBP is rising on hopes for the Brexit deal done today.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.