Morning Juice – Europe Session Prep

Good Morning Traders! This Thursday we get the ECB rate decision.

Here is what to expect for the day.

Sentiment

Japan’s top currency official has warned that the government would evaluate all possibilities for the foreign exchange market and is prepared to respond to any event after the yen sank to its lowest level against the dollar since 1990.

China signalled ongoing support for its currency, as widespread rise in the dollar maintained the yuan near to a policy no-go zone.

Emerging-market currencies sank and equities reduced gains as hotter-than-expected US inflation statistics curtailed wagers that the Federal Reserve will lower interest rates.

Last month, China’s consumer prices barely climbed from a year ago, while industrial prices continued to fall, emphasising the deflationary forces that remain a major danger to the economy’s recovery.

Oil rose for the first time in three days as traders anticipated a potential strike on Israel by Iran or its proxies, which could start a substantial escalation of hostilities in the Middle East.

According to persons familiar with the intelligence, the US and its allies fear that large missile or drone strikes by Iran or its proxies against military and government targets in Israel are likely, potentially escalating the six-month-old confrontation significantly.

Docket

08:00 ET (Tentative)
OPEC Monetary Policy Report

08:15 ET
ECB Interest Rate Decision
Median Forecast 4.50% | Prior 4.50% | Range 4.50%/4.25%

ECB Deposit Rate Decision
Median Forecast 4.0% | Prior 4.0% | Range 4.0%/3.75%

ECB Monetary Policy Statement

Good Luck today, Traders!