Today is a busy day in terms of economic data with the EU inflation figures due at 10am followed by the ECB’s interest rate announcement in the afternoon.
Later today, we have the US retail sales & Industrial production figures due.
The ECB interest rate announcement at 1.15pm will be the main focus today.
There is very high expectation rates will be cut again today for a second consecutive time, following clear evidence of a slowing economy and inflation rates dropping to its lowest level in some time.
The comments that follow thereafter by ECB president Christine Lagarde will as always be carefully monitored for clues on the banks future expectations and rate cuts.
A rate cut in December is already looking likely and is widely expected by markets.
The ECB is unlikely to alter its expectations on future rate cuts, therefore we could see a fairly resistant euro on the back of this, unless of course there are surprises.
US retail sales are expected to come in at 0.3 percent, higher than last month’s 0.1 percent figure.
The dollar is well supported on the back of global negativity and has gained 3.5 percent against the pound over the past month.
GBP dropped following softer-than-forecast UK inflation data at the start of the week raising the odds of bank rate cut in November.
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