TALKING POINTS – ECB, EURO, DAVOS, YEN, US PMI, US DOLLAR
Euro could fall if a anxious ECB appears to be mulling further stimulus
Anxious Davos chatter, gentle US PMIs may stoke international slowdown fears
Japanese Yen, US Greenback more likely to profit amid one other risk-off sweep
The ECB charge resolution headlines the financial calendar in European buying and selling hours. A change in coverage is nearly definitely not within the playing cards. Certainly, markets aren’t pricing in a change by 2019. That places the highlight on the follow-on press convention with central financial institution President Mario Draghi.
Eurozone financial knowledge has more and more deteriorated relative to forecasts since August of final yr. If Mr Draghi hints that the Governing Council has mulled counter-measures – one other spherical of TLTRO liquidity injections, maybe – the Euro is more likely to be pressured decrease.
A anxious tone might also reinforce broader considerations about slowing financial progress worldwide, a topic already producing a flurry of anxious commentary on the World Financial Discussion board, a gathering of policymakers and monetary market bigwigs nonetheless underway in Davos, Switzerland.
US PMI survey knowledge may spook traders additional. It’s anticipated to indicate that manufacturing- and service-sector progress has this month. US financial news-flow has tended to underperform analysts’ projections just lately, opening the door for disappointment.
Taken collectively, these developments may set off one other spherical of de-risking throughout the broad monetary markets. Such a state of affairs most likely bodes effectively for the perennially anti-risk Japanese Yen. A pickup in liquidity demand amid liquidation could burnish the attraction of the US Greenback additionally.
See our market forecasts to study what is going to drive currencies, commodities and shares in Q1!
ASIA PACIFIC TRADING SESSION
EUROPEAN TRADING SESSION
** All occasions listed in GMT. See the full financial calendar right here.
FX TRADING RESOURCES
— Written by Ilya Spivak, Foreign money Strategist for DailyFX.com
To contact Ilya, use the feedback part under or @IlyaSpivak on Twitter