The ECB monetary policy meeting is due later today at 5.15pm IST. This would then be followed by a press conference at 6.00pm IST. Although the central bank is expected to keep interest rates unchanged, comments from ECB chief Christine Lagarde will be closely watched for any hints on QE tapering, especially in wake of strong economic growth and a surge in inflationary pressures in the euro area.
Why is ECB meeting important?
ECB is one of the most powerful central banks in the world and manages the Euro, which is the second most traded currency in the world after the dollar. Movements in EUR/USD has a strong bearing on DXY Index, as 57.6% of the index comprises of Euro. Meanwhile, DXY index strongly influences commodity prices and has a bearing on global risk appetite as well.
Hence, actions or any hints about future policy action by the ECB can influence the DXY, which in turn can affect commodity prices and the risk appetite. As a result, commodity and currency traders need to pay attention to the ECB meeting.
How to track the ECB policy rates?
Well, you can stay up-to-date by tracking the ECB data on FYERS Economic Calendar widget. Click the below link to visit our web page.