Will the ECB finally take action
The BoE and ECB meetings are scheduled for today and it is always an interesting build up to the releases. First up will be the BoE […]
The BoE and ECB meetings are scheduled for today and it is always an interesting build up to the releases. First up will be the BoE statement, with no change expected and asset purchases expected to stay at £375bn and the interest rate to stay at 0.50%. The more interesting data will come from the votes later in the month to see if the dynamics are changing more in favour of a rate hike.
The biggest event today will be the ECB rate announcement, with an expected unchanged rate at 0.15%. A lot of uncertainty and pressure is building on the ECB to act on its low inflation. Could we see a further cut to boost inflation as they have previously done, or will they stay the same and plead for more time for it to work? The press conference will probably be the most volatile hour or so as traders try to determine the underlying message mixed in with some calming comments. Most importantly, will the ECB enter another round of QE? Draghi has been saying that they are ready to act if needed and we can expect some moves in the euro today.
Not to miss out on all the fun, the US ADP will be released today, expected at 218k – the same as last time. This data becomes a benchmark for most, as the other big event this week will be tomorrow’s non-farm payrolls.
EUR/USD
Supports 1.3126 1.3105 1.3088 | Resistance 1.3164 1.3181 1.3202
USD/JPY
Supports 104.65 104.41 104.08 | Resistance 105.21 105.54 105.78
GBP/USD
Supports 1.6433 1.6407 1.6375 | Resistance 1.6491 1.6522 1.6548
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