The Single Currency Strong Before The ECB Statement
The Euro/Dollar pair rose 0.29% to trade at 1.1827. German Final Consumer Price Index hit its 3-month maximum of 0.5%. Today’s focus is ECB meeting, where members will address the asset purchase program ending. Mario Draghi’s comments will carry much significance to the EUR/USD. The US releases consumer spending, Retail Sales and jobless claims. Tomorrow, we’ll get Eurozone Final Consumer Price Index and US manufacturing and consumer confidence data.
Yesterday, Fed executed a 25bps rate hike to a range of 1.75%-2.00%. Jerome Powell (Fed Chair) told the economy was improving and “overall outlook for growth remains favorable”. Also: “economic activity has been rising at a solid rate”. Members also upgraded their GDP and inflation forecast. There are about to be 2 more rate hikes, according to the projection.