All Eyes on ECB President Lagarde’s Remarks
16.12.2021
- Europe: ECB Policy Rate and Statement Release
- Philadelphia Fed Business Outlook Index
Yesterday, the three major U.S. stock indices all rebounded, creating a bull market characterized by rising stock prices, interest rates, and crude 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.Yesterday’s FOMC meeting in the U.S. was perceived as more hawkish than market expectations, but it concluded without major turmoil.
In the foreign exchange market, the EUR/USD pair fell temporarily immediately after yesterday’s FOMC meeting, touching 1.122, but is now attempting to rebound during today’s Asian trading session.However, from a technical perspective, the EUR/USD pair is forming a pattern on the 4-hour chart where both highs and lows are being lowered, so we need to closely monitor whether it will be capped by the 4-hour 120-period moving average and decline.
Today, at 17:15, France’s Manufacturing and Services PMIs will be released; at 17:30, Germany’s Manufacturing and Services PMIs and the Swiss National Bank’s (SNB) policy rate and statement will be announced; at 18:00, the Eurozone’s Manufacturing and Services PMIs will be released; and at 18:30, the UK’sManufacturing and Services PMIs, at 20:00 the Turkish TCMB policy rate and statement, at 21:00 the UK BOE policy rate and statement, at 21:45 the Eurozone ECB policy rate and statement, at 22:30 the EurozoneECB President Lagarde’s press conference, U.S. initial jobless claims, U.S. Philadelphia Fed Business Outlook Index, U.S. industrial production at 23:15, and U.S. Manufacturing/Services PMI at 23:45 are scheduled.I plan to keep a close eye on currency strength and weakness while paying close attention to ECB President Lagarde’s remarks today.
Author: Keisuke Sakurai
