Monday’s trading session can only be described as rather dull. Major FX pairs saw little volatility with minimal displays of any sort of trend or theme. Both the pound and euro traded in restricted ranges against the buck. The price of oil fell while stock markets edged higher.
The 2nd half of the week should begin to see some life spring into financial markets. The Fed will announce their latest policy decision tomorrow evening which will be followed by Madame Lagarde from the ECB the next day. It could be a big couple of days for the EURUSD pair (the most traded FX pair in the market, seeing well over $1-trillion in volume each day), which has been stuck in a newly defined range of broadly $1.07 – $1.10.
No major policy moves are expected from either of the central banks. No doubt both will take measures to ensure necessary accommodation is provided to the banking system. They will also ensure cheap money is available to each country under their jurisdiction, helping governments to loosen the purse strings in these tough times.
Today’s economic calendar is exceptionally thin. We have various pieces of 3rd tier data from across Europe throughout the morning, this is followed by some US numbers which are highlighted with the Conference Board’s consumer confidence March read. This is a 1st tier release and could cause problems for the buck if it’s a soft number.
Written by Viv Savani. 9:00am, April 28th 2020
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