Free Trial
AUDUSD TECHS

Fresh Trend Low

US TSY FUTURES

BLOCK, Late 30Y Buy

EURJPY TECHS

Corrective Cycle

US TSY FUTURES

BLOCK, 10Y Buy

PIPELINE

$500M JBIC 5Y SOFR Sole Issuance

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

EUR Treads Water Below Week's Highs Ahead of ECB

FOREX
  • Focus turns to the upcoming ECB rate decision, with markets still split as to whether the bank raise rates by 25 or 50bps at today's meeting. Outside of headline rates, markets will also be looking for clarity surrounding the so-called Transmission Protection Mechanism - a mechanic the bank plan to use to combat unwarranted widening spreads in Eurozone government bond markets.
  • The conditions surrounding the TPM will be a particular focus today as the Italian 10yr yield surges higher on the resignation of the Italian PM Draghi, who failed to corral sufficient support for his broad coalition. The Italian/German 10y yield spread has blown wider by over 10bps today, with the Italian 10y yield now higher than it's Greek counterpart.
  • The Italian news has done little to hinder the EUR's progress, however, with the single currency off the session's best levels but avoiding any test of the late Wednesday lows.
  • Equity futures are generally lower early Thursday, indicating a softer open on Wall Street later today. Nonetheless, the risk backdrop remains favourable, with the e-mini S&P printing a new monthly high this week and piercing key resistance at the 55-day EMA.
  • Outside of the ECB decision, weekly US jobless claims data is due as well as the July Philadelphia Fed. Outside of G10, both the South African and Turkish central banks also decide on policy.
221 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • Focus turns to the upcoming ECB rate decision, with markets still split as to whether the bank raise rates by 25 or 50bps at today's meeting. Outside of headline rates, markets will also be looking for clarity surrounding the so-called Transmission Protection Mechanism - a mechanic the bank plan to use to combat unwarranted widening spreads in Eurozone government bond markets.
  • The conditions surrounding the TPM will be a particular focus today as the Italian 10yr yield surges higher on the resignation of the Italian PM Draghi, who failed to corral sufficient support for his broad coalition. The Italian/German 10y yield spread has blown wider by over 10bps today, with the Italian 10y yield now higher than it's Greek counterpart.
  • The Italian news has done little to hinder the EUR's progress, however, with the single currency off the session's best levels but avoiding any test of the late Wednesday lows.
  • Equity futures are generally lower early Thursday, indicating a softer open on Wall Street later today. Nonetheless, the risk backdrop remains favourable, with the e-mini S&P printing a new monthly high this week and piercing key resistance at the 55-day EMA.
  • Outside of the ECB decision, weekly US jobless claims data is due as well as the July Philadelphia Fed. Outside of G10, both the South African and Turkish central banks also decide on policy.