Previous Day's Market Highlights
Despite a relatively busy economic calendar, Thursday was dominated by the ECB meeting. Rumours were found true, as the ECB announced that December would bring an end to its quantitative easing programme. The monthly net asset purchases will be reduced to €15bn in the final quarter of the year, before ceasing all together.
This seemingly hawkish shift in monetary policy was largely overshadowed as the ECB also indicated that it will keep interest rates unchanged “at least throughout the summer of 2019”. This is due to fear that inflation will constantly miss the ECB’s 2% target over the next few years.
Elsewhere, US retail sales (MoM) beat expectations coming in at 0.8% compared to a forecast of 0.4%. This coupled with the dovish ECB rhetoric saw EUR/USD fall by over 200 pips in the afternoon session, trading at a low of 1.1567, it’s worst weekly loss since November 2016.
Similarly, in the morning session, sterling saw gains of 1% against the euro, after better than expected retail sales data, and climbed to 1.3446 against the US dollar. However the bull ride was short-lived as GBP/USD saw a sharp selloff, and is now trading at two week lows of 1.3250.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
The week ends with a relatively quiet day on the economic calendar. The highlight of the morning being Eurozone final inflation data year-on-year at 10am which is forecasted to come out at 1.9%.
In the afternoon session, we have Canadian Manufacturing Sales data released at 1.30pm which is forecasted at 0.6%
Today's Economic Calendar
|JPY||Bank of Japan Interest Rate Decision||-0.1%||-0.1%|
|10:00am||EUR||Eurozone CPI (MoM)||1.1%||1.9%|
|10:00am||EUR||Eurozone CPI (YoY)||1.9%||1.9%|
|2:15pm||USD||US Industrial Production||0.2%||0.7%|