Markets look to ECB

November 21, 2019

Another central bank takes centre stage, this time the European Central Bank.

The EURUSD opened and closed rather flat overnight. The pair began the day at $1.10775 and fell throughout the first half of the day, hitting lows of $1.10523 mid-session. The euro bounced off those lows, climbing to highs of $1.10808 but gave up some of those gains late in the day. It is currently trading at $1.10743. The GBPUSD tracked a similar path to the euro after opening the day at $1.29248. The pair ticked up to a high of $1.29301 shortly after the open but slid in early trading, bottoming-out at $1.28863 mid-session. It rebounded off those lows and is now trading at $1.29235.

The Dow was flat for most of the day, ending the session slightly lower overnight. The index opened at 27,897.67 and edged up to a high of 27.908.05 just after the open. It slipped from those highs and traded in a tight range for the majority of the day, before dipping to lows of 27,670.05 late in the day. It bounced off those lows and closed at 27,826.00. The Dax weakened again overnight, continuing its disappointing run. The German index began the day at 13,194.97 and ticked up to a high of 13,208.61 in the opening hour of trade. The Dax slipped a few points and remained flat in early trading before falling to lows of 13,069.94. It climbed off those lows and closed at 13,127.54.

The day ahead sees attention turn to the ECB. Europe’s central bank will be publishing its Monetary Policy Meeting Accounts from its latest interest rate meeting. Like the FOMC meeting yesterday, the minutes from the ECB will be looked upon with great interest as it gives a more in-depth insight into the thinking of policy makers.

Other data published today includes:

NZ – Credit Card Spending

Japan – All Industries Activity

Europe – Consumer Confidence

UK – Public Sector Net Borrowing

Canada – ADP Non-Farm Employment Change, BoC Financial System Review, BoC Governor Stephen Poloz speaks

US – Philly Fed Manufacturing Index, Unemployment Claims, CB Leading Index, Existing Home Sales, Natural Gas Storage


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