Investors Are Focused on the ECB Meeting

The US dollar is changing slightly against a basket of currency majors. The dollar index (#DX) closed yesterday's trading session with a slight decrease (-0.02%). "Political successes" of the US in the conflict with Turkey supported the US currency. It should be recalled that US President Donald Trump demanded from Turkey to stop the Turkish military operation in Syria, but Turkey refused to do so. As a result, the United States imposed sanctions on Turkey. The US annulled sanctions for Turkey and now the conflict with Turkey has receded into the background.

Today, investors are focused on the ECB interest rate decision, as well as on the latest statement by Mario Draghi. President of the European Central Bank (ECB) Mario Draghi will hold the last meeting on monetary policy. On October 31, Mario Draghi ends his mandate at the head of the ECB. Investors do not expect any significant changes to the ECB at the upcoming meeting.

Also, the situation concerning Brexit is still unclear. British Prime Minister Boris Johnson told European Council President Donald Tusk that he did not want another delay in Britain’s exit from the EU and was confident that he would be able to vote in Parliament for the Brexit deal until October 31. However, it is not yet clear what will be in the near future.

The "black gold" prices have been growing amid resolving the conflict with Turkey. Currently, futures for the WTI crude oil are testing the $55.65 mark per barrel.

Market Indicators

Yesterday, there was the bullish sentiment in the US stock markets: #SPY (+0.29%), #DIA (+0.16%), #QQQ (+0.19%).

The 10-year US government bonds yield has risen again. At the moment, the indicator is at the level of 1.75-1.76%.

• - ECB interest rate decision at 14:45 (GMT+3:00);
• - Core durable goods orders in the US at 15:30 (GMT+3:00);
• - New home sales in the US at 15:30 (GMT+3:00).

by JustMarkets, 2019.10.24

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.