Market Brief 7 September: ECB Interest Rate Decision due Today
It’s going to be a busy day across markets. We have news coming in from Australia, Europe, Canada and the United States. All of those are high-impact events to shake up the markets.
AUD, 02:30 a.m. GMT +1, Retail Sales (MoM) (Jul) – analyst expectations are for no change at 0.3%, same as last time. If, however, the actual result surprises us, there could be significant reaction from the market. If the reading comes out higher than expected, this should further increase the price of the Aussie against the dollar. And, if the news is bad, then this should be read as having a bearish impact on the currency.
EUR, 12:45 p.m. GMT +1, ECB Interest Rate Decision (Sep) – this is the hot news for the day. Interest rates have considerable impact on the market involved, in this case the euro currency and all pairs that involve the euro. Projections are for no change and the interest rate remaining at 0.00%, i.e. no change compared to last time. All major market participants will be watching the result coming out. If there is an unexpected increase in the rate, this should boost the euro even higher. And, if the rate gets cut, this could potentially send the euro in a free fall.
EUR, 13:30 p.m. GMT +1, ECB Press Conference – the conference discusses rationale and factors that brought to the interest rate decision that came out and it also answers press questions. The conference is crucial for potentially giving cues as to future developments of the monetary policy of the EU.
CAD, 15:00 p.m. Ivey PMI (Aug)- Analyst consolidate forecast point to an increase at 61.3 versus 60.0 for the previous month. If the news today show a better than expected result this should increase the price of the Canadian dollar. On the other hand, a potential decrease should negatively impact the currency.
15:00 p.m. GMT +1, Crude Oil Inventories – projections for this week are at 4.700 M versus – 5.392M. in case the actual reading shows that inventories have increased, this should be read as having negative impact on the price of oil. And, if there is a significant decrease in output, this should be read as a bullish sign.
Wishing you Happy and Successful Trading!
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