💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

The Day Ahead: Top 3 Things to Watch

Published 10/25/2017, 04:50 PM
© Reuters.  What to watch out for in tomorrow's session
EUR/USD
-
USD/JPY
-
DX
-

Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow

European Central Bank president Mario Draghi in the spotlight

The European Central Bank delivers its decision on monetary policy on Thursday and is widely expected to leave interest rates unchanged. Investors attention, however, is expected to focus on the bank’s quantitative easing programme amid expectations the central bank will taper its loose monetary policy measures.

The ECB’s monetary policy decision will be accompanying by an appearance from ECB president Mario Draghi in a press conference at 08:30ET.

Draghi has previously attempted to curb investor expectation of monetary policy tightening as his central banks colleague fear a surge in euro would weigh on Eurozone’s economic activity.

EUR/USD rose 0.40% to $1.1808.

Top tier US economic data on tap

Fresh on the heels of data showing new home sales rose to a 10-year high on Wednesday, investors look ahead to the release of additional data on the housing sector.

Economist expect Pending Home Sales rose 0.2% in September following a 2.6% decline in the previous month, reversing the recent trend of falling demand among homebuyers for existing homes.

The Labor department, meanwhile, releases its weekly count of the number of individuals who filed for unemployment insurance for the week ended Cot 20. Economist forecast initial jobless claims to rise by 13,000 to 235,000.

The duo of reports comes ahead of U.S. GDP data slated for Friday amid a decline in dollar against its rivals.

The yen in focus

Following its recent slump against the dollar, the yen will be in focus as Japan releases its inflation data at 19:30ET on Thursday, expected to show a slight increase to 0.8% in September.

The recent drop in the yen comes amid investor expectations the Bank of Japan will continue on its loose monetary policy path after Japanese Prime Minister Shinzo Abe's won a snap election for his party earlier this week.

Prime Minister Shinzo Abe’s ruling Liberal Democratic party-led coalition won a two-thirds parliamentary “super majority” that gave him a fresh mandate to revive growth with a mix of ultra-loose monetary policy, spending and reform.

USD/JPY fell 0.13% to $113.76.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.