Brexit talks continue in Brussels this week but European officials are reluctant to give any concessions as they are concerned Prime Minister May will not be able to secure a majority in the House of Commons. Meanwhile, Jeremy Corbyn, whose vision of Brexit is a permanent custom union with the EU, met with soft Brexit supporting Tories, Oliver Letwin and Nick Boles with the aim of establishing a common approach. On the data front, Halifax published its latest house price index this morning which revealed that prices increased by 2.8 per cent compared with the same period last year. The pound has remained little changed as investors are anxiously awaiting the results of next week Parliament votes.
Today’s European Central Bank monetary policy announcement is the biggest event of the week and could move markets even more than tomorrow’s US non-farm payrolls report. In the last 15 months, the EUR/USD pair dropped after every policy meeting except for September 2018. Although interest rates are expected to remain on hold, traders will pay close attention to the press conference by the ECB president, Mario Draghi. News released yesterday showed that the ECB could be looking into a new targeted long term refinancing operation (TLTRO), i.e. providing long-term loans to banks and offer them an incentive to increase their lending to businesses and consumers in the euro area – the aim would be to boost the Euro zone economy. The ECB is also expected to downgrade its growth and inflation forecasts, in order to reflect the global slowdown.
What it means for you
Get in touch to know more about the latest news & how it could impact your transfers
Contact us +44 (0)203 582 3957, email@example.com