The week ahead will see attention shift to the eurozone with Thursday’s European Central Bank announcement. The euro has been slowly but surely recovering from recent weakness seen against the US dollar and pound. After tapping $1.17 against the greenback, EURUSD is now just shy of $1.20 and, after reaching €1.18, the GBPEUR pair is back down in the €1.15s.
The announcement will likely not see any policy changes. Interest rates will remain the same while the pace of bond purchases will also not be altered. The main attention will be paid to the words of President Lagarde who will hold a press conference 45 minutes after the announcement is made. Her tone and content will be monitored for clues to future changes, this is where the euro will take its cues from.
Elsewhere, this week sees flash PMIs from the US as well as employment, inflation, and retail sales numbers from the UK.
Have a good week.
Written by Viv Savani. 7:51am, April 19th 2021
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