As Thursday’s European trading session gets underway, participants’ full attention will be on the pending ECB announcement at lunchtime. This will be the first ECB event since they confirmed their new 2% inflation target, in line with both the Fed and Bank of England.
Investors will be keen to hear how this change impacts the European Central Bank’s outlook and approach to providing accommodation to the region. Market consensus has priced in a dovish outcome, with the EURUSD pair languishing in the $1.17s despite the greenback having a soft day on Wednesday. The statement arrives at 12.45 with the accompanying press conference commencing at 13.30.
Elsewhere, US jobless claims and existing home sales will be on the economic calendar. Many traders & dealers will also be keeping an eye on the pound after it performed well yesterday, closing above $1.37 and €1.16 against the US dollar and euro, respectively.
Written by Viv Savani. 8:27am, July 22nd 2021
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