HomeECB Financial Stability Review – A Potential Market-Moving Event

ECB Financial Stability Review – A Potential Market-Moving Event

The ECB Financial Stability Review is the highlight of the trading week ahead. Higher volatility is expected on the Euro pairs.

The week ahead is light in terms of economic data, but one event has the potential to move markets – the ECB Financial Stability Review. The review is released twice a year, and while it has no precise date, it is expected to come out this week.

It is an assessment of conditions in the financial system and may impact the euro pairs. The market expects the report to be released on Wednesday, and so the euro pairs may move in a tight range until the release.

Fed Members’ Speeches Dominate the Trading Week Ahead

Later today, FOMC members Clarida and Bostic will deliver opening remarks at an online conference hosted by the Atlanta Fed. On Wednesday, Fed’s Bostic has an interview with Bloomberg scheduled just a few hours before the FOMC Meeting Minutes. The market expects the Fed’s dovish tone to continue, and thus the dollar to remain offered into the release.

Employment change in Australia is due this week, expected at 20.3k for the month of April. The unemployment rate is seen at 5.6%, and any surprises there may move the AUD pairs.

The trading week ends with the PMI data in Europe, and with two interventions from the ECB’s President, Christine Lagarde. On Thursday, she is due to speak at a conference hosted by the European Money and Finance Forum, and on Thursday she participates in a press conference following the Eurogroup meetings in London

As always, when the ECB chief speaks, the markets listen. The euro remains bid across the board, as the market participants like the relatively hawkish tone from the ECB, when compared to the ultra-dovish Fed.

The trading week, therefore, is likely to be dominated by the price action in the US stock market. With no particular events other than the ECB Financial Stability Review, the focus will sit on the equity markets and their bullish run.

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