All Eyes on the ECB’s Policy Rate Announcement and Press Conference
28.10.2021
- Europe: ECB Policy Rate and Statement Release
- U.S. Third-Quarter GDP
Yesterday, two of the three major U.S. stock indices closed lower, with the market ending the day in a risk-off mood marked by falling stock prices, lower interest rates, and lower crude oil prices. U.S. durable goods orders for September, released yesterday, came in at a 0.4% decline—better than the market forecast of a 1.1% decline—but marked the first decline in five months.
In the foreign exchange market, the euro—which is set to announce its policy interest rate today—is trading without a clear direction, with the EUR/USD pair consolidating around the 1.160 level. In particular, over the past two days or so, it has been trading within a range of 1.158 to 1.161, making it very difficult to gauge the market’s direction.Meanwhile, the euro has risen slightly against the pound, and the EUR/GBP pair is currently trading around 0.844.
Today, at 16:55, Germany’s unemployment rate; at 17:30, South Africa’s Producer Price Index; at 20:45, the ECB’s policy rate and statement; at 21:00, Germany’s Consumer Price Index (flash estimate);at 21:30, U.S. initial jobless claims, remarks by ECB President Lagarde, U.S. third-quarter GDP, U.S. core PCE deflator, and U.S. personal consumption expenditures (flash estimate),at 23:00: U.S. pending home sales; at 23:30: U.S. weekly natural gas inventories; at 24:00: U.S. Kansas City Fed Manufacturing Activity Index; and at 26:00: U.S. 7-year Treasury auction.I plan to keep a close eye on ECB President Lagarde’s remarks while waiting to see which direction European currencies take.
Author: Keisuke Sakurai
