Good morning I’m Nima and you’re watching the Hot Topic… this week’s topic is the European Central Bank – so let’s talk about what Happened.
· On Thursday, the ECB decided not to proceed with changes to the bloc’s monetary policy and also left interest rates unchanged. · The EUR/USD immediately jumped 50 pips peaking at 1.1058. · While on Friday the U.S. dollar rallied to a four-month high against a basket of major currencies, boosted by the monetary policy outlook.
So what led to this situation? · In the conference that followed, ECB President Mario Draghi commented on Brexit and the geopolitical instability resulting from the decision. · He also highlighted the declining state of the Eurozone’s banking industry · The decision taken on Thursday means that the main refinancing rate remains at 0%, the marginal lending facility rate at 0.25%, and the deposit facility at -0.40%. So What’s going on This week? · Investors will be looking at Wednesday’s highly-anticipated FOMC statement for guidance on the pace of future US interest rate hikes which is at 6PM GMT
· While on Friday, the markets await a monetary policy announcement from the Bank of Japan amid growing expectations for further stimulus. · Lastly, be sure to keep your eye on the GBP – Since the U.K. shocked the markets with their decision to leave the EU on June 24, the pound has already declined nearly 12% against the dollar and analysts are expecting further declines
That’s it for this week once again I’m Nima and you’ve been watching the Hot Topic.
For more info: http://www.easymarkets.com/gtw/6288142.aspx
Good morning I’m Nima and you’re watching the Hot Topic… this week’s topic is the European Central Bank – so let’s talk about what Happened.
· On Thursday, the ECB decided not to proceed with changes to the bloc’s monetary policy and also left interest rates unchanged.
· The EUR/USD immediately jumped 50 pips peaking at 1.1058.
· While on Friday the U.S. dollar rallied to a four-month high against a basket of major currencies, boosted by the monetary policy outlook.
So what led to this situation?
· In the conference that followed, ECB President Mario Draghi commented on Brexit and the geopolitical instability resulting from the decision.
· He also highlighted the declining state of the Eurozone’s banking industry
· The decision taken on Thursday means that the main refinancing rate remains at 0%, the marginal lending facility rate at 0.25%, and the deposit facility at -0.40%.
So What’s going on This week?
· Investors will be looking at Wednesday’s highly-anticipated FOMC statement for guidance on the pace of future US interest rate hikes which is at 6PM GMT
· While on Friday, the markets await a monetary policy announcement from the Bank of Japan amid growing expectations for further stimulus.
· Lastly, be sure to keep your eye on the GBP – Since the U.K. shocked the markets with their decision to leave the EU on June 24, the pound has already declined nearly 12% against the dollar and analysts are expecting further declines
That’s it for this week once again I’m Nima and you’ve been watching the Hot Topic.
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