Will the results of the Fed's stress test offset the fibre's ECB-driven joyride?
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ECB VP Luis de Guindos will be talking about the policy mix and policy normalisation today, while board member Philip Lane will be discoursing about macroeconomic forecasting at the central banking summit. Meanwhile the fibre surged at the back of ECB chief Lagarde’s comments pertaining to further tightening in order to address persistent inflation. Other ECB officials have also demonstrated strong signs of hawkishness.?The M3 quarterly as well as yearly money supply aggregate and private loans data are due for the Eurozone. Inflation and industrial sales figures for Italy and Gfk consumer confidence survey for the German economy will also be published. The fibre is currently trading at 1.0948 driven by the ECB’s renewed hawkish stance.??
Today, the market is anticipating the results of the Fed’s stress test on the US banking industry. Construction industry data was encouraging yesterday with monthly new home sales surging by 763K and housing price index for the same period climbing to 0.7%. Mortgage applications, goods trade balance and wholesale inventories are due today. Investors will be paying attention to Fed chair Powell who will be participating at a panel discussion about monetary policy at the ECB conference. The greenback was trading at 102.62 against other majors at the time of writing.