What To Look out for Today – ECB Sticks With Lower Rate

Maybe what to look out for today, is a bit a misnomer since the big market news today is the European Central Bank, following its other global central bank counterparts – sticking with a lower rate, a record low in fact. This came in contradiction to Mario Draghi’s previous statements, hinting towards a hike and a tightening of monetary policy – considering economic stabilization and growth in the Eurozone. Draghi did make his intentions clear though when he went on record saying that policy adjustments would be implemented gradually, which was exactly what his US Fed counter-part Janet Yellen said a few months ago.

Speaking of the dollar – yesterday one of the world’s most traded currency, slipped back to its lowest price in almost a year – largely due to an investigation launched against the President Trump, probing his close business ties with Russia – causing investors to fear this may delay the incumbent’s pro-growth policy implementation.

We can look forward to a relatively quiet trading day, other than yesterday’s ECB’s announcement, other noteworthy news is CAD CPI announcement – although considering CAD recent dovish monetary stance, this probably won’t have a significant impact on markets.

This article comprises the personal view and opinion of the STO Investment Research Desk and at no time should be construed as Investment Advice.

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