Stocks & euro advance ahead of ECB meeting

Wednesday was a positive day for equities and the single currency, with the bullish momentum staying in place on Thursday.

Later in the day, the ECB meeting will occur, with investors not expecting any changes to monetary policy. The following statement should sound dovish, acknowledging more threats to the EU economy from the ongoing lockdowns, while inflation still lags behind the central bank’s target.

Additionally, US jobless claims will be released, with the initial claims forecast to jump back above 600,000. Existing home sales will also be published.

Investors bought the dip in US stocks yesterday as it looks like the 1.5% correction from all-time highs is all we get, despite the record valuations and extensions from some key moving averages.

The EURUSD pair defended the strong support at 1.20, and it looks like Tuesday’s reversal bar will be ignored. Weaker USD helped to spur more bids for precious metals, and gold rallied toward the 1,800 USD threshold. 

Elsewhere, the US crude oil stockpiles unexpectedly edged higher in the week ended on April 16 by 594,000 barrels. The Energy Information Administration (EIA) said on Wednesday, confirming American Petroleum Institute (API) data from the day before. Thus, oil fell toward the 61 USD level afterward. 

Source: https://www.axiory.com/market-news/stocks-euro-advance-ahead-of-ecb-meeting