EUR awaits on ECB’s decision

Daily update

Yesterday’s markets

• CNY Gross Domestic Product
• USD Housing Starts and Building Permits

Yesterday explained

GDP for China was reported as expected hence there’s was not much movement in the currency. In the US, housing data came in mixed, with building permits surpassing  market's expectations by printing 1.225M in September, but housing starts missing forecasts with 1.047M. Nothing being enough to excite investors' appetite.

The EUR/AED pair fell to its lowest since last July, trading at 4.0234 in the evening, and holding nearby till the end of the day.  The common currency remains vulnerable ahead of the upcoming ECB's economic meeting this Thursday.

Today’s market

• AUD Fulltime Employment, Employment Change, Unemployment Rate
• EUR Producer Price Index, Interest Rate Decision, ECB Deposit Rate Decision & Monetary Policy Statement
• USD Final Presidential debate

Today’s focus

The focus of the day will be on European Central Bank (ECB) that will focus on Interest rate decision and deposit rate decision. Investors will be interested to know if the ECB has a dovish view on the European economy and retains the Interest rate or any changes will be done. Later on the day ECB president Mario Draghi will give a press conference on monetary policy, His comments may influence the volatility of EUR.

Although the Central Bank is largely expected to maintain its economic policy unchanged, and focus once again in implementation, investors will be watching closely the Q&A session after Draghi's press conference, looking for clues on whether the latest rumors over tapering have sustainable bases, or if the ECB is willing to extend its easing program, sometime in the nearest future.