All eyes on ECB President Lagarde’s remarks

All eyes on ECB President Lagarde’s remarks

16.12.2021

Yesterday, the three major U.S. stock indices all rebounded, creating a bull market characterized by rising stock prices, interest rates, and oil prices. The yield on the 10-year U.S. Treasury note rose slightly to 1.46%, while the VIX (fear index) fell below its benchmark level of 20 to around 19.2. Although the U.S. Federal Open Market Committee (FOMC) meeting yesterday was perceived as more hawkish than market expectations, it concluded without major disruption.

In the foreign exchange market, the EUR/USD pair fell briefly immediately after yesterday’s FOMC announcement, touching 1.122, but is now attempting to rise during today’s Asian trading session. However, from a technical perspective, the EUR/USD is forming a pattern on the 4-hour chart where both highs and lows are being lowered, so we will be closely monitoring whether it will be capped by the 4-hour 120-day moving average and decline.

Today’s schedule includes: France’s Manufacturing/Services PMI at 17:15, Germany’s Manufacturing/Services PMI at 17:30, the Swiss National Bank’s (SNB) policy rate and statement at 17:30, the Eurozone’s Manufacturing/Services PMI at 18:00, the UK’s Manufacturing/Services PMI at 18:30, Turkey’s Central Bank (TCMB) policy rate and statement at 20:00, and the UK’sBOE policy rate and statement, 21:45: Eurozone ECB policy rate and statement, 22:30: Eurozone ECB President Lagarde press conference, US initial jobless claims, US Philadelphia Fed Business Outlook Index, 23:15: US industrial production, and 23:45: US Manufacturing/Services PMI.I plan to keep a close eye on currency strength and weakness while paying attention to ECB President Lagarde’s remarks today.