Rate decision from Federal Reserve on Wednesday, 7:00 pm GMT as well as US NFP report for January on Friday, 1:30 pm GMT are key events of the week. However, it does not mean that there are no other noteworthy macro events scheduled. In fact, there are plenty of those and they may have some big impact on European assets. The European Central Bank is set to announce a rate decision on Thursday, 1:15 pm GMT. Moreover, German GDP data for January is set to be released tomorrow at 1:00 pm GMT. Note that Spanish CPI reading surprised significantly to the upside today and this is creating risk of a similar outcome from German data. This, in turn, could make ECB members reconsider their recent somewhat dovish comments. Current market expectations are for a 50 basis point rate move.
ECB decision could be very important for the German DAX index (DE30). Taking a look at DE30 at D1 interval, we can see that the index has reached the resistance zone ranging around 15,200 pts mark. The move has stalled there and the index has been trading sideways for almost 3 weeks now. Should ECB double down on its hawkish approach and signal that recent inflation developments do not change the near-term outlook for monetary policy, indices may feel some pain.
Start investing today or test a free demoOpen real account Try demo Download mobile app Download mobile app
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.