ECB maintains rates and insists it does not target FX rate

Exclusive Capital Research Team

Exclusive Capital Research Team

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Market Brief, Friday, 11th of September, 2020

The major US indices sold off with the Nasdaq trading as low as 11,100 and the S&P at 3,330 led by tech-giants. The Asian session saw a moderate rebound and is currently trading mixed with the ASX down 0.6% the Nikkei up 0.5% while in China the Hang Seng is up by 0.4% while the Shanghai Composite is down by 0.2%.

September’s ECB meeting kept interest rates and stated that it expects interest rates to remain at their present or lower levels until it has seen the inflation outlook robustly converge to a level sufficiently close, but below the 2% level and that it will continue its purchases under the PEPP.

The dollar index consolidated overnight after initial losses post-ECB where President Lagarde noted that the Governing Council had discussed the recent appreciation in the Euro but do not target the FX rate. The EURUSD traded as high as 1.1917 before dropping back down to 1.1830 as risk appetite from the US session showed a stronger USD.

WTI and Brent are trading in a range with the former trading around 37.20 and the latter around the 40$ per barrel level.

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