All eyes are on the ECB’s policy rate announcement and press conference

All eyes are on the ECB’s policy rate announcement and press conference

28.10.2021

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 declining oil prices. U.S. durable goods orders for September, released yesterday, came in at a 0.4% decline, compared to market expectations of a 1.1% decline, marking the first contraction in five months.

In the foreign exchange market, the euro—which is set to announce its policy 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, 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, with the EUR/GBP pair currently trading around 0.844.

Today’s schedule includes Germany’s unemployment rate at 16:55, South Africa’s Producer Price Index at 17:30, the ECB’s policy rate decision and statement at 20:45, Germany’s Consumer Price Index (flash estimate) at 21:00, U.S. initial jobless claims at 21:30, remarks by ECB President Lagarde, U.S. third-quarter GDP,U.S. Core PCE Deflator, U.S. Personal Consumption Expenditures (flash estimate), U.S. Pending Home Sales at 11:00 PM, U.S. Weekly Natural Gas Inventories at 11:30 PM, U.S. Kansas City Fed Manufacturing Activity Index at 12:00 AM, and a U.S. 7-Year Treasury Auction at 2:00 AM.We will keep a close eye on ECB President Lagarde’s remarks while monitoring the direction of European currencies.