The ECB Monetary Policy Meeting Accounts will be released at 14:30 MT on January 16
Will the ECB Press Conference have a positive influence on the euro?
The ECB will announce the main refinancing rate at 14:45 and give a press conference at 15:30 MT time on December 12.
Since 2016 the European main refinancing rate has been kept at 0%. The legacy of the former ECB President Mario Draghi was to keep the rate unchanged until the inflation rate in Europe comes sufficiently close to but below 2%. The preliminary inflation rate for the month of November in the Euro Area was at 1%, which is far away from the target. Hence, the new ECB head Christine Lagarde is unlikely to make any change to the rate. However, the focus of attention needs to be at the ECB Press Conference following the rate announcement and the monetary policy statement. In her speech, Mrs. Lagarde may share some important insights into the state of the European economy and the quantitative ease policy being implemented through the bond purchase program. If her report brings positive prospects, that will support the euro.
- If the ECB Press Conference provides a positive economic outlook, it will support EUR;
- If the ECB Press Conference provides a negative economic outlook, it will create pressure on EUR.
Canada will publish the headline and core retail sales on January 24 at 15:30 MT time.
The European Central Bank will publish its monetary policy statement and announce the main refinancing rate on January 23 at 14:45 MT time.
The Bank of Canada (BOC) will release its rate statement alongside the monetary policy report during its meeting on January 22 at 17:00 MT time.