Focus of the day, What will the ECB say?
The European Central Bank will announce its policy decision at 14:45 MT time (GMT+3). A press conference will follow at 15:30 MT time. Traders will want to see whether the European policymakers feel the need to combat record inflation levels even in the face of a potential war-induced recession.
As inflation in the Eurozone is at record highs, the ECB may be hawkish today. That could be expressed in adjusting the monthly purchases to conclude the emergency bond-buying program by June to start hiking rates in the second half. If the ECB does that, Euro will be able to bounce from the long-term support.
The Bank of Canada hiked its benchmark interest rate by half a percentage point to one percent on Wednesday in its latest move to rein in high inflation. USDCAD dropped.
Japanese Yen eased down to 125.00. Still, many analysts think that the pair can keep rising to its 20-year high at 130.00 in the coming months.
China is expected to cut a key policy interest rate for the second time this year on Friday and reduce the reserve requirement ratio soon. This might have a positive impact on HK50.
US stocks (US500 index) rebounded on Wednesday despite new data on producer prices that showed inflation running at multi-decade highs. Morgan Stanley, Goldman Sachs, and Citigroup will report earnings today.
Oil prices jumped on Wednesday, as a large increase in US crude inventories failed to soothe worries about tight global supply. Crude oil reached 104.00
EUR/USD.
The pair formed a nice bullish candlestick on Wednesday and got above 1.0900. The ECB meeting will make EURUSD swing today. The most likely scenario is the advance to 1.0950 and 1.1000