Today’s focus will be firmly on the European Central Bank as they hold another monetary policy announcement followed by a 1 hour statement and press conference with Mario Draghi.
Today’s decision will be an interesting one due to the rapidly deteriorating health of the eurozone. Italy is in recession while Germany narrowly escaped the embarrassment of being dragged down too. As quantitative easing has drawn to a close it’s become apparent that, on a regional basis, some members have found it hard to adjust. This is mostly a result of the rigidness of policy. There are 19 members of the euro and 1 set of policies. One size fits all sadly doesn’t work when it comes to monetary policy.
The European Central Bank will provide updated forecasts in relation to growth and inflation. These will be very important when it comes to defining market sentiment and potentially how the euro will react. The key levels to watch on EURUSD are $1.12 and $1.14 while on GBPEUR €1.1580 and €1.1720. It’s likely some of those ranges are tested today.
Eurozone GDP will also cross the wires today, this all comes on the eve of another key jobs report from the US tomorrow at lunchtime.
Written by Viv Savani. 8:27am, March 7th 2019
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8:23am, May 7th 2019
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