Currency Market Analysis
Jul 25, 2019 | Currency Market Analysis
Euro in focus as ECB meets
The euro saw a small improvement overnight as markets turned cautious ahead of tonight’s all-important European Central Bank meeting.
The most recent market pricing saw a 45-55 split in favour of maintaining rates but, even if the ECB does hold rates steady, the focus will be on whether the ECB looks to cut when it next meets in September.
A surprise move to cut rates, however, could see the EUR weaken.
Otherwise, the market continued to support the US dollar after this week’s agreements to postpone the US government’s debt ceiling talks for two-years.
RBA’s big speech
Other than the ECB, the other highlight today comes from the Reserve Bank of Australia.
RBA governor Philip Lowe presents his annual speech to the Anika Foundation on the topic of “Inflation Targeting and Economic Welfare”.
This speech will be closely watched as the RBA wrestles with efficacy of record-low interest rates and their impact on savers and retirees.
The RBA speech is due at 11.05am.
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