No “Pick of the Day” for the Euro trading session tonight as traders wait in anticipation for the Bank of England and European Central Bank interest rate decisions tomorrow.
We will focus mainly on the ECB’s decision and Trichet’s statement tomorrow morning, after which we will trade based on the market reaction of the widely expected raise from 3.25% to 3.5%. The key to tomorrow’s movement is whether or not Trichet will use a less hawkish tone, and the future projections of Eurozone growth and inflation will be closely watched as well.
With the US Non-Farm Payrolls number just another day away after the ECB statement, I don’t think we will see too strong of a move after the interest statement release. The NFP report will give us a more solid short-term outlook for the Greenback, so after tomorrow’s volatility we will probably see traders sit and wait once again.
So, stay tuned and check back tomorrow morning for a US trading session “Pick of the Day!”