Good Morning, Traders!
It is Thursday the 16th of October. Today the headline act is the ECB rate decision. Let's take a look at things to look out for.
Sentiment
The European Central Bank's intention to raise interest rates by another half-point has been called into question by banking crisis that began in the United States but has now hit much closer to home: Here's our approach to making a decision.
Given the persistent uncertainties surrounding banking sector stress, Economists believe the Governing Council will be more cautious than previously suggested, expecting a rise of only 25 basis points, with the risks skewed towards a greater move of 50 basis points.
Key politicians and regulatory experts are increasingly calling on Federal Reserve Chair Jerome Powell to conduct an independent probe into the failure of Silicon Valley Bank, rather than only an internal examination by the Fed board.
Treasury Secretary Janet Yellen planned to tell Congress on Thursday that the US banking system is still sound, attempting to reassure lawmakers, depositors, and investors before answering tough questions about how the sector is governed.
A rising crisis of confidence in Credit Suisse Group AG, a massive lender heavily entwined in the global financial system, raises the prospect of a bank-lending shortage, which may send economies into recession.
According to JPMorgan, the Fed's emergency lending program could pump up to $2 trillion into the US banking sector, easing the liquidity crisis.
Docket
8:30 AM ET
US Housing Starts Number for February - Median Forecast 220K | Prior 215.4K | Range 240K/199.5K
US Initial Jobless Claims - Median Forecast 1310K | Prior 1309K | Range 1367K/1250K
9:15 AM ET
ECB Deposit Rate - Median Forecast 3% | Prior 2.5% | Range 3%/2.75%
ECB Interest Rate - Median Forecast 3.5% | Prior 3% | Range 3.5%/3.5%
ECB Rate Statement
11:30 AM ET
US 4-Week Bill Auction
Speakers
9:45 AM ET
ECB President Christine Lagarde Holds Press Conference following the ECB Rate Decision.
Good Luck Today!
