Before today's ECB interest rate decision and the subsequent press conference with ECB President Mario Draghi, the financial markets are operating within a rather limited range. However, the DAX and the Euro are showing cautiously positive trends.
Euro in the morning with a moderate increase
After the EUR/USD pair experienced almost all facets of volatility yesterday, surpassing the 1.13 USD mark for a short time after the poor ADP labor market figures from the U.S., and experiencing a complete sell-off of the gain in the afternoon after the better-than-forecasted ISM Purchasing Managers' Index figures, some stability in the price movements is to be seen before today's ECB meeting.
The pair is currently trading slightly higher at the 1.124 level, but following the ECB's interest rate decision and especially during and after the press conference with Mario Draghi, the pair may see some sharp moves towards both the 1.132 and 1.1130 levels. The same applies to other EUR pairs as well, with the EUR/JPY pair losing its initial gains after BoJ Governor Kuroda's speech and slipping slightly into the red.
DAX starts trading day positively
Before the ECB meeting, the German benchmark index starts the trading day on a friendly note and climbs back above the 12,000 mark. If the analysts' expectations that the ECB will leave interest rates unchanged and renew its commitment to maintain them until at least the end of the year are confirmed, the recovery of the index could continue. However, the real estate sector could have a negative influence here, after plans were published today by the Berlin Senate to freeze rents in Berlin for at least 5 years from 2020.
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