Talking Points:
- Tomorrow’s economic calendar[1] has three key releases as we start with a Bank of England rate decision at 7:00 AM ET, and this is followed by an ECB rate decision at 7:45. The bank is widely-expected to begin tapering QE purchases at that meeting, and this will be spoken to during ECB President Mario Draghi’s accompanying press conference, set to start at 8:30 AM. Also at 8:30 AM, we’ll be getting August inflation numbers out of the United States, making for a potentially heavy outlay of volatility tomorrow morning.
- A number of FX themes remain of interest[2] as we approach tomorrow’s drivers: The BoE rate decision may be obscured by Brexit dynamics, as headlines continue to push the Pound in either direction. Pivotal, however, will be the directional move in EUR/USD[3] as this may finally help the US Dollar[4] to break out of its recent impasse. The big question – which Dollar trend takes over? Do we see the 13-month down-trend from last year come back into the equation? Or will we see the two-month spurt of US Dollar strength that showed in April and May turn into something more?
- DailyFX Forecasts on a variety of currencies such as the US Dollar[5] or the Euro[6] are available from the DailyFX Trading Guides page[7]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[8]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[9].
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