Oil prices continue to rise as production is restricted
February 2, 2021
334 Views
Oil prices rose during today's trading, in the European market, to maintain their strong gains…
EURUSD falls before the results of the European Central Bank meeting
EURUSD witnessed a decline in the morning of Thursday’s trading in the European market after it recorded yesterday the highest daily rise in six years, and it is expected that the European Central Bank will reveal the results of its regular meeting later in the day.
EURUSD is back down
The EURUSD pair traded at the level of $1.1026, losing about 0.4% from today’s opening session, and at the end of trading yesterday, Wednesday, the single currency gained about 1.6%, recording the best daily performance since 2016, with the improvement in risk appetite among investors in the markets. Background of the meeting of foreign ministers of Russia Ukraine, in addition to the drop in oil prices.
The foreign ministers of Russia and Ukraine met Thursday for the first time since the start of the war between Russia and Ukraine in Turkey, amid optimism among many about progress between the two sides for a ceasefire and a binding settlement between the two parties.
The euro currency fell to its lowest level in 22 months during trading on Monday, reaching $1.0804, in light of the aggravation of the crisis in Ukraine and its negative repercussions on the entire region.
All eyes on the European Central Bank meeting
Later in the day, the European Central Bank is expected to release the results of its first meeting after the military invasion of Ukraine. Expectations are for the bank to keep interest rates at zero, and to keep the marginal lending rate at 0.25% and the deposit rate at -0.50%, In addition to continuing with the emergency bond-buying program of 1.85 trillion euros per month.
It is worth noting that at the last meeting of the European Central Bank, which was held in January, the bank revealed its intention to stop the bond purchase program at the end of March and to reduce the asset purchase program that was announced before the Coronavirus pandemic, starting from 40 billion euros during the second quarter of 2022.
Markets will also be interested in the speech of the President of the Bank, Christine Lagarde, who will hold a press conference after the European Central Bank meeting, and is expected to talk about the bank’s plans and how to confront the risks of inflation and slowing economic growth in light of the war in Ukraine, and investors are also waiting for US inflation data to be released in Later in the day, which will be an indication of the policy of the Federal Reserve, which will hold its meeting next week.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
