How Energy Crisis Affects German PMI August 23, 2022, 10:30 GMT+3 Germany will publish Flash Manufacturing PMI data on Tuesday, August 23, at 10:30 MT time (GMT+3)…
What will happen to the euro after the ECB meeting?
What will happen?
The European Central Bank publishes its monetary policy statement that includes an announcement of the interest rate on March 11, at 14:45 MT time. As usual, the event will be followed by a press conference with the ECB President Christine Lagarde at 15:30 MT time. Given to recent increase in the German 10-year Bund yields, the ECB members commented on a possible recalibration of the pandemic emergency purchase program (PEPP). This is a stimulus measure implemented for supporting the economy during the pandemic.
How to trade on the ECB monetary policy statement?
With the threats of surging bond yields, it is very important to monitor the ECB decision. According to the recent report by the bank, there is no need for immediate action. At the same time, the European Central bank considers adjusting PEPP purchases. Pay attention to the tone of the statement. Any dovish hints will pull the euro lower. At the same time, if the regulator does not change its existing plan, the euro may rise.
- If the ECB is optimistic, the euro will get positive momentum;
- If the ECB is pessimistic, the euro will fall.
Instruments to trade: EUR/USD, EUR/GBP, EUR/JPY
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The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Every week we expect many interesting events that can shake the market.