ECB Hikes Rates Amid Hawkish Tone in Tokyo
The European Central Bank's interest rate decision is set to dominate today's financial markets, with consensus expecting a 25 basis point hike in the main refinancing rate to 2.65%, and the deposit rate to 2.5%. The decision will be followed by a press conference at 14:45.
The US PPI inflation readings and weekly jobless claims will also shape expectations ahead of the upcoming Federal Reserve meeting, scheduled for later this week. Overnight, hawkish comments from the Bank of Japan's Board Member Masu triggered a strengthening yen.
Australia's MI Inflation Expectations remained unchanged at 4.9%, suggesting price pressures remain anchored at an elevated level. Meanwhile, President Trump promised a $5,000 voucher payout for every American if Republicans win the midterms, but indicated no intention to negotiate with Iran.