Forex Marketz Daily Forex News – Fully Markets Update
The European markets are looking at a cautiously higher open after the opening bell on Monday. Traders are taking a cautious tone ahead of Thursday’s crucial European Central Bank meeting and after Chinese exports fell unexpectedly last month. Data out of Japan showed that their economy, in the second quarter, expanded but below expectations.
Global economic data continues to indicate global trade headwinds are slowing expansion as the bitter trade war between the United States and China continues. This is increasing fears of a a global slowdown.
As a result, the European Central Bank, later this week, is expected to announce further monetary stimulus to boost a slowing Eurozone economy. Traders are also pricing in at least a 20 basis point rate cut. However, traders remain unsure what the ECB’s stimulus package will look like.
Currently, futures are indicating that the London FTSE 100 will open up by 22 points. Futures are indicating that France’s CAC 40 will open six point lower and the German benchmark DAX is pointing to opening 15 points higher.
European Traders wait on Thursday’s ECB Meeting and German Trade Data
On Thursday, the ECB is all but guaranteed to approve new stimulus pan. They are hoping to boost a weakening Eurozone economy. Traders are still unclear as to what this monetary stimulus package will look like. There has been a deepening rift between the hawks and doves on the ECB Governing Council.
On the economic calendar, during the European trade session, Germany will release trade data. This release could offer more clues about the health of their economy and the world’s. Traders will be looking at the export number closely.
ECB monetary policy makers are looking to insulate their economy and shore up economic growth as the trade war between the world’s two largest economies takes its toll and increases the risk of the Eurozone entering a recession.
