Focus on ECB

22 October, 2015

Matthew Boyle

Yesterday was a fairly non eventful day on the market. As such rates across the board and significantly across the majors remained stagnant and flat throughout the day, trading within a tight range. Perhaps unsurprising given the lack of data released yesterday and the fact that much of the market is eagerly awaiting today’s releases with the much anticipated ECB interest rate decision and Monetary statement. 

With many speculating that there may be a top up to the existing ECB Q.E programme all eyes will be focussed on Draghis speech. Any indication that this will happen, either now or in the coming months could well see Euro buying rates improve. However if further Q.E is off the cards and Draghi as he often does talk up the Euro, we could well see the Euro strengthen and the gains that GBP and USD have made in the last week or so erode. So if you have an imminent Euro trade coming up you may want to keep in close contact with your Currency Index account manager should rates begin to tumble, particularly given that rates are the best they have been in over a week which could be down to speculation on today’s report.

Elsewhere today, although of lesser note we also have UK retail sales data and US housing data. 

Whilst most of the days movements will likely hang on Draghi and the ECB, unusual results here could as always also cause rates to move.

Certainly though as we always see the ECB announcement will cause movements today regardless of the exact outcome, so prepare for a busy day.