The ECB and Uncle Sam’s first GDP studying are up at this time!
How will the releases have an effect on EUR/USD’s short-term downtrend?
Earlier than transferring on, ICYMI, at this time’s Asia-London session watchlist checked out EUR/JPY’s downtrend ahead of the Bank of Japan (BOJ) and European Central Bank (ECB)’s policy decisions. You’ll want to take a look at if it’s nonetheless a legitimate play!
And now for the headlines that rocked the markets within the final trading sessions:
Contemporary Market Headlines & Financial Information:
WTI crude down 4% from 7-year excessive after EIA report of upper inventories
Japan’s retail gross sales beat estimates as customers defy virus fears
Financial institution of Japan lowers outlook for progress & inflation, highhlights want for reforms
Australia export costs climb 6.2% on quarter in Q2
German unemployment fell greater than anticipated in October
Euro hovers forward of ECB assembly, yen seems previous BOJ doves
ECB’s monetary policy decision at 11:45 am GMT
ECB’s presser at 12:30 pm GMT
U.S. advance Q3 2021 GDP at 12:30 pm GMT
U.S. preliminary jobless claims at 12:30 pm GMT
U.S. pending house gross sales at 2:00 pm GMT
For those who’re not conversant in the foreign exchange market’s fundamental buying and selling classes, take a look at our Forex Market Hours software.
What to Watch: EUR/USD
Did central financial institution drama peak on the Financial institution of Canada (BOC)’s coverage shock earlier this week?
All eyes might be on the European Central Financial institution (ECB) as President Lagarde and her workforce navigate points akin to international provide and demand points in addition to greater client costs.
Markets don’t count on the ECB to make coverage modifications so merchants will look to Lagarde’s presser for clues on the central financial institution’s progress and inflation outlook and possibly their tapering timeline.
In the meantime, the U.S. will print its first GDP studying for Q3 2021. Phrase round is that the Delta variant, Hurricane Ida, and fewer fiscal stimulus have reduce into the financial system’s robust progress from the earlier quarter.
Will the greenback commerce as a safe-haven at this time? A a lot slower U.S. GDP studying may spook merchants into pricing in slower international progress outlook.
However don’t low cost the ECB’s impression simply but! If Lagarde hints that they’re getting uncomfortable about greater costs, then not less than some merchants might be hawkish sufficient to propel EUR/USD to the highest of its channel on the 1-hour time-frame.
If the ECB sticks to its wait-and-see plan, nevertheless, or if at this time’s U.S. GDP report highlights the Fed’s plans to taper this yr, then EUR/USD can commerce under its pattern line assist and full its bearish flag sample on the chart.