Investors Assess ECB Meeting. The British Pound Is Still Under Pressure

During yesterday's trading session, the greenback showed a variety of trends against the basket of world currencies. The dollar index (#DX) kept the current levels (+0.08%). Investors are focused on the ECB meeting. As expected, the regulator kept the key marks of the monetary policy at the same level: the base interest rate at 0.00%, the deposit rate at -0.5%, the margin rate at +0.25%. The Central Bank has raised its GDP forecasts for 2020-2022, as well as improved its inflation forecast for 2021. ECB President Christine Lagarde says the Eurozone economy is experiencing a "strong rebound" after the collapse in the second quarter.

The British pound is still under pressure amid uncertainty concerning Brexit. GBP/USD quotes fell by more than 1.5% and reached $1.28. EU chief negotiator Michel Barnier said that significant differences remained between London and Brussels in areas important to the EU. We recommend following up-to-date information on this issue. Financial market participants will assess the US inflation report today.

The "black gold" prices have become stable. At the moment, futures for the WTI crude oil are testing $37.40 per barrel. At 20:00 (GMT+3:00), data on US Baker Hughes oil rig count will be published.

Market indicators

Yesterday, there was the bearish sentiment in the US stock market: #SPY (-1.74%), #DIA (-1.45%), #QQQ (-1.99%).

The 10-year US government bonds yield continues to consolidate. At the moment, the indicator is at the level of 0.68-0.69%.

• - UK GDP data at 09:00 (GMT+3:00);
• - UK manufacturing production at 09:00 (GMT+3:00);
• - Report on inflation in the US at 15:30 (GMT+3:00).

by JustMarkets, 2020.09.11

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.