The Euro Pound drastically moves as a result of the press conference than due to the actual
interest rate decision of the ECB.
However, when important news such
as interest rate decision by FED comes out you can expect a lot of volatility and then spreads widen 10 - 20 times for a few minutes.
This week brings a flurry of economic news: a run of economic data in the US, culminating on Friday with unemployment numbers (non-farm payrolls) for April, as well as
interest rate decisions from the Bank of England and the European Central Bank on Thursday.
This week brings a wide range of data on the state of the U.S. economy, while investors will also have multiple opportunities to try to gain further insight into the thinking of Fed officials on
future interest rate decisions.
«We would expect a material slowing in growth,» Carney said in a press conference after the bank's most recent
interest rate decision in May.
(Much of this impression comes from his very
first interest rate decision as Governor in March 2008: a surprise cut of 50 basis points in the overnight rate on the basis of the U.S. outlook.)
The markets have been hyper - focused on the
US interest rate decision coming today from the new Fed chair Jerome Powell but at this point, I'm not even sure that this is going to be the biggest market mover right now.
The Bank of Canada will likely stand pat during their next
key interest rate decision on September 9th, so a further cut would suggest extreme weakness in the Canadian economy.
Chris Conway, head of research at the Australian Stock Report, said that the Brexit vote, the US Federal Reserve's
June interest rate decision and the overall global manufacturing environment were the major background issues for investors.
Be careful when it comes to the press conference statements since it sometimes happens that events,
e.g. interest rate decisions, are downplayed and your job is to watch if the conference comments are in line with the actual statistics that has been released.
The JOBS NUMBERS have taken on added importance as the FED has made its data
dependent interest rate decision overly reliant on job growth and more importantly, AVERAGE HOURLY EARNINGS.
The credit monitoring firm's report comes out a day before the Bank of Canada announces its first
interest rate decision since hiking its key lending rate by one - quarter of a point to 0.75 per cent in July.
The Fed will issue its
latest interest rate decision and statement at 2 p.m. ET, with investors not expecting an interest rate hike this time around.
The decision comes as Governor Stephen Poloz has struck a decidedly more cautious tone in recent months, saying
future interest rate decisions would be data - driven rather than prescribed.
This was presumably related to insecurity in connection with the FED's
interest rate decision in September but the rise would probably not have been so extreme if there had not been a looming presidential election.
A three - day sell - off has taken the Australian sharemarket back to levels last seen in early May, as falling commodity prices and upcoming events such as a
US interest rate decision and the «Brexit» vote take their toll on investor confidence.
** STOCKHOLM - The Riksbank will hold a press conference on
the interest rate decision.
OSLO - Norway Central Bank holds Announcement of the Executive Board's
interest rate decision and publication of Monetary Policy followed by press conference 0800 GMT.
European Central Bank President Mario Draghi speaks at a press conference following the institution's
interest rate decision.
His normally boilerplate explanation for
his interest rate decision contained a new line: «Some modest withdrawal of the present considerable monetary policy stimulus may become appropriate.»
Bank of England (BOE) Governor Mark Carney is due to speak Thursday lunchtime following the release of the institution's
interest rate decision and inflation report.
LONDON - Bank of England announces
its interest rate decision and publishes the minutes of the meeting 1200 GMT.
OSLO - Norway Central Bank holds Announcement of the Executive Board's
interest rate decision and publication of monetary policy followed by press conference 0900 GMT.
OSLO - Norway Central Bank holds announcement of the executive board's
interest rate decision 0900 GMT.
KUALA LUMPUR - Central Bank of Malaysia announces
interest rate decision.
LIMA - Central Bank of Peru announces
interest rate decision.
CHISINAU - National Bank of Moldova announces
interest rate decision.
FRANKFURT - ECB President Mario Draghi holds a press conference following
the interest rate decision meeting.
OSLO - Norway Central Bank holds Announcement of the Executive Board's
interest rate decision and publication of Monetary Policy followed by press conference 0900 GMT STOCKHOLM - Riksbank executive board meeting 0800 GMT.
European stocks closed lower on Wednesday as investors waited for the U.S. Federal Reserve's statement on
its interest rate decision and digested new corporate earnings.
THURSDAY, APRIL 26 STOCKHOLM - The Riksbank will hold a press conference on
the interest rate decision.
Traders, reacting to quarterly results, are awaiting the U.S. Federal Reserve's
interest rate decision and its outlook for future rate hikes for further direction.
The US Dollar index hit new highs for the year ahead of the Federal Reserve's
interest rate decision later today, where it's expected they will continue to signal further rate hikes as the US economy grows at a reasonable pace.
HIGHLIGHT The US Dollar index hit new highs for the year ahead of the Federal Reserve's
interest rate decision later today, where it's expected they will continue to signal further rate hikes as the US economy grows at a reasonable pace.
The interest rate decision is also important, but sometimes the press conference after the bank meeting can make more sense because it reveals the sentiment and the insider atmosphere, which is very important for an objective assessment of the economic health.