Investors Await ECB Policy Meeting

USD

On Thursday, the Greenback took a breather after recent highs, amid optimism over the prospects for the U.S. tax reforms plan and speculation who should lead the Federal Reserve starting early next year which could steer policy in a more hawkish direction. Meanwhile, it is widely expected that U.S. President Donald will announce his Fed chair candidate before his Asian trip in early November.

• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.11% at 93.62.

EUR

The euro traded higher vs. the Greenback as markets are awaiting the European Central Bank’s policy meeting. The ECB policy makers could indicate the end of loose monetary policy, while the USD eased from recent highs.

Investors will turn their attention to ECB president Mario Draghi's press conference 45 minutes after the announcement, as they look for further details on how and when the ECB will start eliminating its monthly quantitative easing program.

The single currency rose as much as 0.3% vs. the USD with EUR/USD at $ 1.1816.

On the economic calendar for Wednesday, markets are awaiting the ECB Rate Decision.

GBP

The Sterling pound rose as much as 0.38% vs. the Greenback at $1.3213 due to a strong UK strong economic data. The strong UK GDP figure are increasing expectations that the BoE could hike interest rates when it meets next week.

JPY

The JPY fell slightly vs. the USD and settled at ¥113.68.

Gold

Gold prices recovered from their lowest level in more than 2-weeks, as the Greenback took a pause after its recent rally ahead of the upcoming ECB’s policy meeting later in the day.

Gold Futures - Dec 17 rose as much as 0.3%, to settle at $1,279.33.

Oil

Earlier today, Oil prices declined negatively affected by an unexpected hike in U.S. crude inventories and as oil exports and output from the United States increased last week.

Crude Oil WTI Futures - Dec 17 was down by 0.25% at $52.05 and Brent Oil Futures - Dec 17 fell as much as 0.27% at 58.28.

Economic Calendar (all times in GMT)

• EUR European Central Bank Rate Decision (OCT 26): (GMT 11:45) – Important – Forecast (0.00%) – Previous (0.00%).
• EUR ECB Marginal Lending Facility (OCT 26): (GMT 11:45) – Important – Forecast (0.25%) – Previous (0.25%).
• EUR ECB Deposit Facility Rate (OCT 26): (GMT 11:45) – Important – Forecast (-0.40%) – Previous (-0.40%).
• EUR ECB press conference after Governing Council meeting: (GMT 12:30) – Important

Disclaimer
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.