The Forex market will be heavily focused on today's European Central Bank policy release, which could result in a rate increase from 4.25% to 4.50% in the main refinancing rate.
➡️ The European Central Bank will hold a policy meeting today where it is expected to keep rates unchanged, despite ongoing concerns about unacceptably high inflationary pressures. Some analysts predict that the Bank will increase rates by 0.25% today.
➡️ Yesterday's release of US CPI (inflation) data saw theMonthly CPI be as expected, while theCore CPI was just slightly above expectations, bringing annualized inflation slightly higher than expected to 3.7% instead of 3.6%. The release, other than triggering short-term volatility, appears to have had minimal impact on the market, although stock markets are mostly a bit higher.
➡️ The Forex market is seeing a weaker US dollar. Since Tokyo opened, the US dollar has been the weakest major currency, while the Swiss franc has been the strongest. However, the US dollar remains within a valid long-term uptrend, maintaining the USD/JPY currency pair focused on the Long side for trend traders.
➡️ Crude oil remains strong, WTI yesterday again reached a new 10-month high price above $89. OPEC a, which makes it very attractive for trend-following traders on the Long side.
➡️ Cocoa futures rose sharply yesterday, reaching a new multi-year high price.
➡️ Crucial US economic data will be released today: PPI, retail sales and unemployment claims.
➡️ Bitcoin threatens to collapse to new 2-month lows as the cryptocurrency sector remains weak, with the price unable to settle above the key resistance level at $26,329.
Credit by DailyForex.com