Single Currency Holding Breath Ahead of ECB Decision
The single currency has mildly reduced. Euro/dollar is now trading at the 1.15 level. German PPI rose to 0.0%. The eurozone current surplus increased to 30.1B euros. Today, European Central Bank will have a meeting, where members should decide whether to tighten the policy or not. Investors assume that interest rate will remain untouched and the bond-buying program tapering will be announced in September. Mario Draghi gave a speech in Sintra. President’s comments were taken as an indication of the Bank’s positive attitude about the economy. The United States will release unemployment claims and Philly Fed Manufacturing Index.
Markets are still digesting the recent Republicans’ failure to push a healthcare bill, which couldn’t replace the Obamacare. A lot if investors have totally lost their faith in the US President. It’s getting more and more doubtful that he will be capable to do the promised tax and infrastructure spending reform.