Market Focus

On Thursday, December 14, 2017, a large number of significant news in the economic calendar  will be published, among which the meeting of the Bank of England and the ECB.

From the Bank of England, the market expects an increase in the basic interest rate, to deter inflation in the country. Given that at the moment the UK and the EU have not reached all agreements to ensure a soft Brexit, the CB management is likely to take a cautious stance that will put pressure on the British pound. So, one should expect the pound to fall within 50-60 points against major competitors.

According to the forecast, the ECB will leave the deposit rate at the same level of -0.40%. Also, the ECB will keep the discount rate at the level of 0.0%. The release of data within the forecast can cause mixed reactions in the market and that is why one should expect the EUR/USD pair to move within 30 points.

All attention of market participants regarding the euro will be riveted to the ECB press conference, which will take place a little later. In the event that the management of the ECB touches on the topic of changing the parameters of monetary policy in the future, this can cause a significant increase in volatility in relation to the single currency.

Alexander Sivtsov