Euro declined, as the next meeting of the European Central Bank is approaching this Thursday. Markets have already priced in a further loosening of the monetary policy, with the deposit rate expected to be cut by at least ten bps to -0.4%.
The possibility of boosting the amount of the QE assets purchases also remains in place. Some economists expect the bond-purchase program to be increased by 10 billion euros a month, totalling 70 billion euros.
EUR/USD was trading below the 1.10 key level this morning. The pair has reconfirmed the breach of the daily upward trend channel which occurred two weeks ago, suggesting a move lower might be ahead.
Oil has recently been trading higher. However, yesterday afternoon the commodity tried to correct lower after it reached a 3-month high in the morning. Thus, Brent oil is trading at US$ 40.00 psychological level this morning, whereas WTI is fluctuating around US$ 38.00 mark.
The crude oil inventories release this afternoon will likely to define the oil price direction further. Currently, analysts expect an increase in stocks by 3 million barrels this week, after the index showed a 10.4 million increase last time.
With respect to today’s economic calendar, the European trading hours are promising to be quiet with regards to any major releases, which could affect the market. In the afternoon session, the Bank of Canada and the Reserve Bank of New Zealand will come up with their policy statements, which could cause volatility in the Canadian dollar and the New Zealand dollar.