Spreadex Market Update
Trump tax anti-climax drives trading ahead of ECB meeting
"If [Mario Draghi] displays any of his trademark dovishness the euro’s early losses could increase, taking another dent out of the remarkable growth it managed at the start of the week."
However, despite the consistency of its gains the pound remains in drastically different positions against the two currencies. While cable has spent the morning dipping its toes across $1.29, hitting highs not seen since the start of October 2016, against the euro the pound still has a way to go before it recovers the French election-inspired losses it incurred on Monday.
The euro’s uninspiring performance – it also sat flat against the dollar – did nothing for the DAX or CAC, which fell by 0.3% and 0.4% respectively. The region still has its main event to come: this afternoon’s ECB meeting. It is almost a guarantee that the central bank will keep rates unchanged this Thursday; more important will be the tone of Mario Draghi’s comments. If the ECB chief displays any of his trademark dovishness the euro’s early losses could increase, taking another dent out of the remarkable growth it managed at the start of the week.
While the European indices continue to process the Trump tax disappointment it seems as if the Dow Jones may have already worked out its issues with yesterday’s detail-light press conference. The futures have the Dow opening flat at 20980, with only the durable goods orders reading (forecast to fall from 1.8% to 1.5% month-on-month) to drive trading.
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