Europe Central Bank expected to increase the interest rate today.
Forex
In the aftermath of the Federal Reserve announcements yesterday to increase the rate by 25points, Pepperstone analyst believes that “we can look forward and see nothing priced for the June FOMC meeting, with cuts starting to be priced in July. Looking forward and Fed funds futures price 45bp of cut into December “.
Today the traders will be watching the EUR at 3:45PM GFMarkets trading time . ECB is predicted to announce an interest hike. At the moment EURUSD pair has started moving downside ahead of the press conference.
World Indices
Wall Street had another weak session on Wednesday (Dow-Jones -0.80%) .The US Federal reserve Bank forecasted a rapid economic growth in the U.S. for the rest of this year, thanks to massive fiscal spending and optimism around interest rate hike. “It’s shocking that the U.S. government believes it will grow faster than China this year,” according to strategists at Barings Investment Institute.
Commodities
In commodities, gold jumped to $2077 and dropped by $50 per ounce as result of the US interest rise, The announcement pushed up the precious metal. Oil extended its latest price decline trading now at 68.9/barrel, weighed down by recession fear after 25 points interest raise.
Today’s Calendar
The highlights of today’s economic calendar
– 3:15 PM EU Monetary statement
– 3:30 PM US Unemployment Claims
– 3:45 PM EU ECB press conference
