ECB in focus, stocks with strong rebound and Oil recovering

Frank Walbaum FX Strategies.Asia

Important news for the day

Thu, 12th, 14:15 CET EU Main refinancing rate.
Thu, 12th, 14:30 CET US Unemployment claims.
Thu, 12th, 14:45 CET EU Press conference.

ECB rate decision

Today, traders will wait for the interest rate decision from the European Central bank. It is expected that the Bank will cut rates by 50 basis points, which would be another move after their action in June. The question might be, though, on how the future meetings will follow in regards to a further loosening of their monetary policy. According to Bloomberg another rate cut might follow in December. The pace could remain with quarterly cuts throughout 2025. Some market participants expect that the EUR might then fall back to lower levels. Against the Dollar the market currently looks as if it would weaken again soon.

Market talk

The oil market looks set to regain some strength after it had fallen towards the support zone at USD 66.00. Potential positive momentum might follow as also the weekly chart suggests. After the slightly higher consumer prices from the US yesterday, stock markets also started a big rebound. Upside momentum might continue. The S&P 500 could even rise beyond the 5675 resistance level.

Tendencies in the markets

Equities positive, USD stronger, cryptos sideways, oil at support, metals positive, JPY sideways.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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