Today, the market will tune in the ECB president Lagarde’s press conference to find out more about the central bank monetary policy and the stance about the high Euro exchange price.
The French industrial productions for July of 3.8% came in lower than expected of 5.0% and lower than the prior print of 13.0%, while the Italian figures of 7.4% came in better than expected of 3.5% but lower than the prior read of 8.2%.
Nonetheless, these released numbers have had a very limited effect on the Euro price against major currencies.
Reports of AstraZeneca may resume the Coronavirus vaccine trials next week given the markets on Wednesday new hopes and led global stock markets higher reversing the effect of the previous day selloff.
The US Dollar retreated on Wednesday for the first time since late August and closed the daily candlestick in the red with a near 0.5% loss. Therefore, the US Dollar index may fall towards 92.34.
On the other hand, EUR/USDrecovered some of its losses and rallied above the 1.1800- handle. Investors' eyes will be on the ECB press conference at 4:30 PM where president Lagarde may comment on the accelerated rise of the Euro exchange price.
GBP/USDprinted on Wednesday a six-week low at 1.2884, as the market started to price a no-deal Brexit risk. However, we have seen a similar situation last year and then both sides ended up with an exit deal. The same thing may happen, and both could strike a trade agreement eventually. Yet, the question is: what kind of deal they would cut?
Crude Oil price retreated on Thursday due to expectations of an increase in last week’s US oil inventories sparking concerns of a surge in oil supply with slower recovery in global demand as the Coronavirus cases rising worldwide.
Crude oil price declined on Thursday by 0.7% and has found support around $37.28, while Brent oil slipped by 0.5% then steadied above $40.00 a barrel. Investors will follow the US stockpile numbers due tonight.
Gold rebounded after multiple failures in closing below $1,921 indicating that XAU/USD may rally towards $2,015.
Today, eyes will be on the ECB rate decision at 3:45 PM (UAE time) then the ECB press, and the initial US Jobless claims conference at 4:30 and by 7:00 PM markets will be waiting for the US oil inventories.
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