Thursday, April 27, 2017 6:24 AM EDT
A monetary policy announcement from the European Central Bank headlines the economic calendar. Changes aside from the implementing the previously announced intent to reduce the size of monthly asset purchases – down to €60 billion from €80 billion previously – are not expected.
When that change was unveiled some months ago, it was coupled with an extension of the program. In sum, the adjustment translated into a bit more aggregate stimulus for 2017 than under the previous regime. The markets may still need reassurance lest a “taper tantrum” breaks out however.
With that in mind, ECB President Draghi is likely to strike an unmistakably dovish tone at the press conference following the policy decision. He will probably stress that the central bank intends to maintain a firmly accommodative posture for the foreseeable future, weighing on the Euro.
The British Pound outperformed, rising alongside UK government bonds. This points to increased demand for GBP-denominated paper as the catalyst for the move, but a discrete trigger is not readily apparent. Regional portfolio rebalancing driven by bets on a dovish ECB is one possible explanation.
The Canadian Dollar corrected higher having plunged to a 14-year low in the preceding session. The move followed reports that US President Donald Trump has opted not to seek an exit from NAFTA, a free trade agreement with Canada and Mexico, having previously threatened to do so.
Asia Session
European Session
** All times listed in GMT. See the full DailyFX economic calendar here.
Disclosure: Have a question about trading the US Dollar?
more
Disclosure: Have a question about trading the US Dollar? Join a Q&A webinar and ask it live!
If you’re looking for trading ideas, check out our Trading Guides. And if you’re looking for ideas that are more short-term in nature, please check out our IG Client Sentiment
Paul conducts webinars geared towards equity indices and commodities every Tuesday, for details see the Webinar Calendar
Join me on Mondays at 7:30 EDT/11:30 GMT for the FX Week Ahead webinar, where we discuss top event risk over the coming days and strategies for trading FX markets around the events listed below. What will drive the US Dollar trends through June? See our forecast to find out!
Are retail traders buying or selling the US Dollar, and what does say about the trend? Find out here! DailyFX, the free news and research website of leading forex and CFD broker FXCM, delivers up-to-date analysis of the fundamental and technical influences driving the currency and commodity markets. With nine internationally-based analysts publishing over 30 articles and producing 5 video news updates daily, DailyFX offers in-depth coverage of price action, predictions of likely market moves, and exhaustive interpretations of salient economic and political developments. DailyFX is also home to one of the most powerful economic calendars available on the web, complete with advanced sorting capabilities, detailed descriptions of upcoming events on the economic docket, and projections of how economic report data will impact the markets. Combined with the free charts and live rate updates featured on DailyFX, the DailyFX economic calendar is an invaluable resource for traders who heavily rely on the news for their trading strategies. Additionally, DailyFX serves as a portal to one the most vibrant online discussion forums in the forex trading community. Avoiding market noise and the irrelevant personal commentary that plague many forex blogs and forums, the DailyFX Forum has established a reputation as being a place where real traders go to talk about serious trading.
Any opinions, news, research, analyses, prices, or other information contained on dailyfx.com are provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
less
How did you like this article? Let us know so we can better customize your reading experience.