This week’s major macro event has finally arrived: the European Central Bank will announce its eagerly-anticipated monetary policy decision at 12:45 BST and President Mario Draghi will deliver the details at the ECB press conference which will start from 13:30.
ECB President Mario Draghi did everything he could today to put a dovish slant on a central bank that’s actively pursuing less monetary stimulus but as we’ve seen before, traders were not interested in what he had to say, it’s what he didn’t say that was important.
The U.S. dollar’s recovery attempt since last week has been futile. Thanks to poor economic data, Fed officials’ dovish comments and fears over the economic impact of the hurricane, not many people are willing to stand in the way of the dollar’s spectacular slump since the turn of the year.
European stock indices stormed higher yesterday and have extended their gains this morning ahead of the European Central Bank rate decision and press conference today. The main focus will be on whether or not the ECB would announce a plan to taper its quantitative easing program, and any comments about the euro, which has climbed to multi-year highs against a number of foreign currencies.