Analysts at TD Securities (TDS) offered a brief preview of next week's important European event risk, the latest monetary policy update by the European Central Bank (ECB).

Key Quotes:

Draghi's final ECB meeting is likely to be a dovish one. Inflation expectations are likely still at record lows, inflation has disappointed, and GDP growth will need to be revised lower again in December. We think that markets are being complacent about the odds of another rate cut this year, even if they won't be able to price that in until after we get a better idea of Lagarde's view on monetary policy.
The ECB looks unlikely to provide EURUSD with a strong directional cue. A lack of fresh policy initiatives keeps attention elsewhere. A dovish message could temper recent gains, but EUR should remain more sensitive to Brexit developments and broader risk appetite.
The market reaction should be relatively muted at the next week's meeting. The key driver for risk sentiment will be the developments on the Brexit front in the coming week. With respect to monetary policy, market focus does turn to the implementation of the ECB's tiered deposit system on October 30 as well as the start of the new QE purchases from November 1.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD struggling to hold above 1.1000

The EUR/USD pair is trading at one-month lows just above the 1.1000 level, undermined by softer-than-expected EU data and persistent uncertainty surrounding the US-China trade relationship.


GBP/USD stuck around 1.2850

The Pound traded lifeless this Tuesday, confined to familiar levels against most rival despite mixed employment data and mounting tensions heading into December’s election.


USD/JPY: Recovering within range ahead of Trump’s words

Japan’s Machinery Tool Orders collapsed in October, according to preliminary estimates. US President Trump is due to deliver a speech, may refer to the US-China trade deal. USD/JPY neutral for the week at around 109.20, downside potential well limited.


Gold: Remains vulnerable near 3-month lows

Gold remained depressed through the mid-European session on Tuesday and is currently placed near three-month lows, just above $1450 level. 

Gold News

Bitcoin: Google's threat, halving, and the best cost strategy

Google threat Bitcoin ecosystem with its Sycamore Quantum Computer. According to experts, the next halving in the Bitcoin mining rewards will occur on May 14, 2020. Dollar-Cost Averaging strategy has yielded a return of over 500 % since 2014.

Read more