Preview for ECB Meeting and Implications for EUR, Metals, Equities
- EUR/USD lingering below key resistance near $1.1460/1.1500.
- Equity markets, precious metals remain in a bullish posture.
- Crowd's disdain for EUR/USD shows in positioning changes.
Markets aren't expecting out of the European Central Bank this morning, with a 0% chance of a rate cut being priced in by EONIA forward rates as well as overnight index swaps. Accordingly, that means that all focus for the Euro will be on President Mario Draghi's press conference, where the tone and tenor could easily dictate rate expectations shifting - especially if he brings focus back to the FX channel. It goes without saying that, as one of the world's most important central banks, the ECB today could push along the rally in higher yielding currencies and risk-correlated assets just as easily as it could derail it.