Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Will the ECB president change his tone?
The European Central Bank will publish its monetary policy statement and announce the official rate on July 25, at 14:45 MT time. After that, the ECB president Mario Draghi will conduct a press conference at 15:30 MT time. We anticipate no changes to the current interest rate, which is held at 0%. However, the ECB president Mario Draghi may throw hints on the possible changes to the current monetary policy and provide comments on the current economic outlook. Last time, Mr. Draghi suggested that the European economy needed additional stimulus for better conditions. His dovish comments pulled the euro lower. If the ECB president changes his tone this time, the situation will be different.
• If the ECB is hawkish, the euro will rise;
• If the ECB is dovish, the euro will fall.
Three main drivers of the market: the stimulus package, the US presidential election and the coronavirus. Let's look how market reacts.
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EU Flash Manufacturing & Services PMI will come out on Friday at 11:00 MT time!