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Should we pay attention to ECB President Lagarde’s remarks at the press conference following the ECB’s policy rate announcement?

Market Report

Should we pay attention to ECB President Lagarde’s remarks at the press conference following the ECB’s policy rate announcement?

Today's Highlights
  1. Europe: ECB Policy Rate and Statement Release
  2. Press Conference by ECB President Lagarde

In U.S. currency trading the previous day, the Canadian dollar fell against the yen. The CAD/JPY pair fell from 106.548 to 106.197. On the hourly chart, the price moved from above the 20-period moving average (MA) to below it.On the 4-hour chart, the pair has been weakening as it faces resistance at the 10-period moving average (MA). On the daily chart, the pair has fallen for four consecutive days and has broken below the 200-period exponential moving average (EMA) support line with a real-body candle. Furthermore, as downward price movement is also being observed during today’s Asian session, we should remain vigilant for further weakness in the Canadian dollar during the European session.

Ahead of today’s ECB policy rate announcement, the euro weakened against the U.S. dollar. The EUR/USD pair fell from 1.1730 to 1.1682. It traded within the range of +3σ to -2σ on the hourly Bollinger Bands.On the 4-hour chart, the pair is gradually forming lower highs between the 20-MA and 75-MA, and on the daily chart, it has fallen for two consecutive days. The market is currently experiencing a pullback following last month’s new high. We will be watching for comments from ECB President Lagarde to see if the euro will weaken further following today’s ECB policy rate announcement.

Today’s schedule includes remarks by RBNZ Governor Hawksby at 8:15, Japan’s Q3 Business Sentiment Index (BSI) and Domestic Corporate Price Index at 8:15, the TCMB policy rate and statement at 20:00, and at 21:15, theECB policy rate and statement, at 21:30: U.S. initial jobless claims and Consumer Price Index, at 21:45: EurozoneECB President Lagarde’s press conference at 23:30; U.S. weekly natural gas inventories at 26:00; and U.S. budget balance at 27:00. Investors should pay close attention to ECB President Lagarde’s remarks during her press conference following the ECB policy rate announcement.

桜井 慶介

Author: Keisuke Sakurai

He has over 10 years of experience in FX trading. In the financial sector, he has been involved in investment management focused primarily on foreign exchange markets and has experience as an asset management advisor. Drawing on his extensive experience, he specializes in technical and fundamental analysis.

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