What To Expect From ECB Interest Rate Decision Today
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ECB President, Mario Draghi’s Press Conference at 01:30 PM GMT will be especially important to Investors, when it comes to the tone and the substance. A less cautious assessment of the economic outlook might well be interpreted by financial markets as a hawkish sign. Whereas no change in tone might cause the Euro to edge slightly lower. The chart below shows the price review of EURUSD last week.
Regarding other Data due for release today, The Goods Deficit in December is expected to narrow to a consensus $68.9 vs an unusually wide $70.0 billion in November, according to market watchers. The steep drop in Initial Claims during the January 13 week is expected to partly reverse this week. The New Home Sales report is known for its volatility but there is a wide consensus among Market Analysts for a solid 683,000 rate for December.
The Euro hit a 3-year high yesterday, Wednesday, showing good recovery despite the mixed Flash PMI Data and Flash Services Data from France. Services PMI Data from Germany and the EuroZone alike came in better than expected, though less can be said for their Manufacturing Data. Against the Dollar, Yen strengthened on the back of better than expected Japanese Trade Data and Flash Manufacturing PMI Report. Sterling advanced and so did the Aussie and Kiwi. The Kiwi actually did rally to a 4-month peak at the beginning of the London Session Wednesday.
Elsewhere, Steve Mnuchin the Treasury Secretary of the United States commented that the weak Dollar is good for US Trade. As we highly anticipate developments from Draghi and Co. today, President Trump is gearing to address the Davos Summit in Switzerland tomorrow, Friday.
On Brexit, the UK seems to be strongly defying Brexit worries, evident from more strong numbers churned out from the economy. Brexit Secretary David Davis moreso, has expressed support for a 2-year transition period in view of the agreement that Britain would remain close to EU Regulatory Regime after finally exiting the bloc.
07:00 AM GMT GfK German Consumer Climate (Feb)
09:00 AM GMT German Business Expectations (Jan)
09:00 AM GMT German Ifo Business Climate Index (Jan)
12:45 AM GMT EuroZone Deposit Facility Rate
12:45 AM GMT EuroZone Interest Rate Decision (Jan)
01:30 PM GMT ECB Press Conference
01:30 PM GMT Goods Trade Balance (Dec)
01:30 PM GMT Initial Jobless Claims
03:00 PM GMT New Home Sales (Dec)
01:30 PM GMT Canada Core Retail Sales (MoM) (Nov)
11:30 PM GMT Japan National Core CPI (YoY) (Dec)
11:50 PM GMT Japan Monetary Policy Meeting Minutes