Services and Manufacturing PMIs are out on Wednesday at 11:30 MT time.
Trading EUR: await news from the ECB
The ECB Monetary Policy Meeting Accounts will be released at 14:30 MT on January 16
The interest rate of 0% is out of the question for the ECB in the foreseeable future, as per the latest press releases. The inflation in the Eurozone still hasn’t reached the 2% target and is not expected to do that in the upcoming months. There are more and more forecasts that promise the further slowdown of the European economy. It’s hard to imagine that the Monetary Policy Meeting Accounts will change the picture. However, although the ECB President Christine Lagarde said previously that she is neither a hawk nor a dove, she mentioned that the quantitative easing will continue “as long as necessary”. We may have more clues on that in the document. In turn, more clues mean trade opportunities. If this policy is confirmed, the EUR will experience selling pressure.
- If the document presses on quantitative easing, the EUR will be under pressure;
- If the document is more hawkish than expected, the EUR will turn up.
The market sentiment is mixed as investors weigh US stimulus package against the rising infections and worse-than-expected US unemployment claims. Jump in for fresh analysis of EUR/USD, USD/JPY, S&P 500 and gold!
US Initial jobless claims will be announced on Thursday at 15:30 MT time.
The US dollar has broken through the key resistance, it failed to cross since March so far. Riskier assets are dipping. Let’s discuss it in detail.