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.
Will the ECB be hawkish this time?
The European central bank will release its monetary policy statement and conduct a press conference on April 10 at 14:45 MT time.
We don’t expect the ECB to change its interest rate which is currently kept at 0%. However, the ECB president Mario Draghi may provide some hints on the possible changes to the current monetary policy amid the global slowdown. Last time his dovish comments on the current economic weakness in Europe pulled the EUR lower. If he is more hawkish this time, the EUR will rise.
• If the ECB is hawkish, the EUR will go up.
• If the ECB is dovish, the EUR will go down.
The USD continues dipping, while the GBP is rising on hopes for the Brexit deal done today.
US stocks and oil slipped as Donald Trump threatened not to sign a long-awaited stimulus bill into law. The market sentiment had been already fragile, and Trump’s comments worsened it even more.
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.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.