The latest news before the ECB decision today

Frank Walbaum FX Strategies.Asia

Important news for the day

Thu, 17th, 14:15 CET EU Interest rate decision

ECB rate decision

Today, the European Central Bank will hold their rate decision and it is expected that rates will be reduced by 25 basis points to 3.4%. This would mark another rate- cut after the last meeting in September. As the EUR recently started to weaken a further slide in rates against other currencies might be seen. The economy in Europe is under pressure as especially the powerhouse of Germany disappoints. Lower rates should hence support the economy causing corporations to get access to cheaper financing.

Market talk

The strength of the Dollar continue yesterday and the Dollar index also crossed the potential resistance zone in form of the 50- moving average based on the weekly chart. If the upside potential continues, a stronger Greenback should be expected. In particular the chances that the EUR will head lower after the interest rate decision of the ECB today might offer further strength of the Dollar. That said the general risk sentiment remains positive with equities rising to higher levels.

Tendencies in the markets

Equities positive, USD stronger, cryptos positive, oil weak, metals positive, JPY weaker

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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