The ECB press conference and Eurozone PMIs rock the charts on Thursday. Here’s your charting cheat sheet inspired by market analysts.
ECB Press Conference and Eurozone PMIs
TDS analysts say that investors should pay attention to the Eurozone PMIs for December ahead of the ECB press conference to reveal the central bank’s monetary policy decision. They estimate that the prints for French services will come in marginally above consensus – 60.2 (mkt 60.0) and slightly above the expected mkt 62.0 for German manufacturing, at 62.8. However, the market reaction ahead of the ECB press conference remains subdued.
As regards the European Central Bank’s decision, analysts estimate that the statement will remain unchanged for October, ‘with all forward guidance’ (TDS). Macro forecasts will presumably hog the limelight of the introductory word, while President Mario Draghi will most likely insist on the upbeat growth outlook, reassuring market participants that underlying inflation trends will improve.
Charting Cheat Sheet
EUR is hardly moved by the news but holds promise for a jump in bond yields on APP composition-related data and the cut in government bond purchases. Hence, here is how the single currency trades today.
EURUSD follows a steady ascending trend, starting the day high at 1.18361 (open daily) and seems likely to test 1.1850s later in the day, paving the way for the psychological 1.1890-1.1900 post upbeat data releases.
For those of you who are wondering about what’s happening on the other side of the pond, let’s take a peek at USDCAD for a change. Having seen some bidding on Thursday, USDCAD seems now to be recovering from weekly lows. With a daily open at 1.28184, the pair jumped to 1.28340 and is going higher.
Across the Pacific, in Australia, the labour market seems to have picked up pace into year end. 62k+ jobs were added in November, compared to TD+25k, mkt +19k, while the unemployment rate remained unchanged at 5.4%.
Consequently, AUDUSD rallies, starting the day at a daily open of 0.76293 and hovers now above the area of 0.76698, en route to 0.770s in the positive territory.