Daily Alert – Thursday 21st July 2022: All eyes on the ECB at lunchtime

Mark NugentDaily Alert, July 2022

Daily Alert – Thursday 21st July 2022: All eyes on the ECB at lunchtime

Good morning.

Yesterday was another day of indecisive risk sentiment.

The Bank of Japan maintained the interest rate at -0.1 percent, as expected. However, inflation has now risen to the 2 percent mark for two months and the days of negative rates must be numbered.

My Japan225 long is doing well: it is almost 1x-risk in the money.

Looking forward, at lunchtime we have the European Central Bank’s rate and statement. There is an expectation of a 25 basis-point hike, the first since January 2016. As is often the case the statement and press conference will reveal the bank’s thinking about the economy and may indicate a change to their level of hawkishness, with the risk being skewed to the “more hawkish” side.

Have a good weekend when it comes.

We’ll be back on Monday.

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