All eyes are on whether the ECB will raise rates to 1.0% as expected
08.09.2022
- U.S. Initial Jobless Claims
- ECB Policy Rate and Statement Release
In the U.S. currency market yesterday, the Dollar Index fell to 109.7, while the EUR/USD rose by 130 pips from 0.9876 to 1.0008. With yesterday’s rise, the EUR/USD has broken out of its downtrend on the 4-hour chart and is now trading in a range-bound market. Currently, the EUR/USD is trading just below the 4-hour 75-period moving average, with price action indicating that the market is searching for direction.
Ahead of today’s ECB policy rate announcement, the euro rose against the yen. The euro/yen pair climbed approximately 2.7 yen from 141.312 yesterday to 144.031. This marked a two-month high, and the pair continued to climb during today’s Asian trading session. It touched 144.328, setting a new high for the year.While the ECB is expected to raise rates to 1.0% today, attention is focused on whether it will implement a larger-than-expected rate hike in response to Europe’s unrelenting inflation.
Today’s schedule includes: France’s trade balance at 15:45, South Africa’s manufacturing production at 20:00, the ECB’s policy rate decision and statement at 21:15, U.S. initial jobless claims at 21:30, ECB President Lagarde’s press conference at 21:45, remarks by Fed Chair Powell at 22:10, and U.S.natural gas inventories at 12:00 a.m., U.S. weekly crude oil inventories at 12:00 a.m., remarks by BOC Senior Deputy Governor Rogers at 12:45 a.m., remarks by Chicago Fed President Evans at 1:00 a.m., and remarks by Minneapolis Fed President Kashkari at 3:20 a.m. All eyes will be on whether the ECB raises rates to 1.0% as expected.
Author: Keisuke Sakurai
