Euro has been very resilient in the global market rout at the beginning of the year. The common currency is still being supported by ECB easing back in December that failed to meet market expectations. Subsequent rhetorics from ECB officials suggested that the central bank will adopt a wait and see stance to see how the stimulus feeds through to the economy. Hence, there isn't much expectation on today's ECB rate decision and it will keep monetary policies unchanged. Nonetheless, the post meeting press conference will still be closely watched for some topics.
The steep fall in crude oil was probably not what ECB expected. Back in December WTI was at around 40 handle but just within weeks into 2016, it's now struggling below 30 handle. ECB president Mario Draghi may show some concerns over further decline in oil price and the effect on inflation expectations. With that in mind, Draghi might signal that ECB is open and ready for further stimulus this year but that would be dependent on new economic forecasts to be published in March. While it's a bit early, Draghi might also discuss the possible instruments to use in case of further stimulus.
Canadian dollar rebounded overnight after BoC kept overnight rate unchanged at 0.50%. The central maintained a relatively neutral stance and noted in the statement that "the current stance of monetary policy is appropriate". Though, it did acknowledge that fall in oil and commodity prices "represents a setback for the Canadian economy". And, "the Bank now expects the economy's return to above-potential growth to be delayed until the second quarter of 2016." BoC now projected that the economy will grow by 1.25% in 2016 and 2.25% in 2017.
Elsewhere, New Zealand business NZ manufacturing index rose to 56.7 in December. Australia consumer inflation expectation rose 3.6% in January. UK RICS house price balance rose to 50 in December. Japan all industry activity index, Eurozone consumer confidence, US Philly Fed survey and jobless claims will be released later today.