Markets will turn their attention to the eurozone today with the latest monetary policy announcement from the European Central Bank. Consensus is for another 75 bps rate rise, taking the headline rate to 2%.
The EURUSD pair finds itself back above parity as it surged through this key level yesterday morning. This is more a function of US dollar weakness rather than euro strength, however, with inflation at almost 10% in the eurozone, regardless of the reason, the ECB will just be glad to see some upside movement in this pair.
The announcement will cross the wires at 13.15 with the press conference 30 mins later at 13.45. Investors will be keen to identify whether more hikes will continue in the coming months or whether the central bank will begin to take its foot off the gas.
Written by Viv Savani. 8:57am, October 27th 2022
The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.