Today, Mario Draghi will hold his final press onference as President of the European Central Bank. Soon, he will be replaced by Christine Lagarde. Amid that, markets are experiencing jitters. Mr. Draghi press conference will be held on the back of the continued economic slowdown in the euro area in particular and in the
world in general. Today, it has been reported that the German manufacturing sector of Germany, the main contributor to the European economic growth,
continued to shrink. According to the preliminary data, the IHS Markit Manufacturing PMI advanced to 41.9 in October, remaining below the boom-or-bust level of 50 points. The German manufacturing sector contracted for the tenth month in a row. Besides, the Purchasing Managers’ Index in the manufacturing sector of the eurozone dropped to its lowest level in seven years. Today, the ECB has announced its decision on monetary policy. Fears were not confirmed, and the interest rate remained at zero. The markets are trying to predict further actions of the regulator. For now, they expect it to launch an additional stimulus package in 2020. The euro/dollar pair remained in the same trading range, but the level of volatility became extremely high. The quotes were ranging between 1.1120 and 1.1160. The GBP/USD pair lost ground and plunged by about 75 points during today’s session. Previously, the pair managed to extend gains amid its upsurge recorded in the previous session, but at about 1.2950, it stalled due to the risk of holding early elections in Britain. So far, the pair has been consolidating around the level of 1.2900. Today’s durable goods orders data from the United States may affect the dynamics of quotes. We keep close tabs on the market development. Stay tuned!