Forex Top Team

The day before the ECB board meeting, the prospect of a 0.5% rate hike is half and half, and we are ready to move to either side.

The euro market was booming yesterday in the information about the ECB board. In some reports, ECB officials said the board would discuss the 0.5% rate hike more seriously than ever before. Since the consensus was a 0.25% rate hike in the market, there is a history of a sudden increase in euro buying. However, the degree of incorporation in the money market is currently 0.25% and 0.50%. It is ready to move to either side, and the Eurodollar is in the low 1.02 range.

Today, Prime Minister Draghi will give a speech to the parliament. The abstention of the coalition partner “Five Star Movement” last week made it difficult to maintain the government. Prime Minister Draghi has submitted his resignation, but Italian President Mario Draghi has refused to accept it. Today’s speech is likely to be a resignation statement again. However, the market seems to have factored in the unrest of the Italian political bureau. If he resigns, the initial reaction of euro selling is expected, but the price movement is likely to converge soon ahead of the ECB board meeting tomorrow.

The EUR is expected to move significantly in tomorrow’s ECB. However, before that, the EUR sales have become stronger as the Russian Foreign Minister announced earlier that he would expand the geographical goal of “special operations”.

Keep an eye on the movement of the EUR.