Lagarde takes the spotlight as oil sits above $100
SPY•Key events for Thursday
- ECB policy meeting (a rate hike expected)
- August inflation data for Germany
- August U.S. PPI inflation
Yen holds firm as BOJ meeting nears
And what of the yen? It stands tall at 153.39 per dollar, up 4% this month, shrugging off the rise in oil prices as traders brace for a faster pace of rate hikes from the BOJ.
In a closely watched speech ahead of next week's policy meeting, board member Kazuyuki Masu warned of broadening price pressures that have pushed underlying inflation "very close" to its 2% target, hinting at rapid rate increases.
Lagarde in focus as oil stays above $100
Investors are perhaps starting to realise that elevated bond yields and higher oil prices are the new normal as the Middle East war spreads ahead of central bank meetings where policymakers may struggle to quell markets' inflation angst.
The European Central Bank will kick off the central bank bonanza later in the day with a widely expected rate hike, with the Federal Reserve and the Bank of Japan due next week.
What comes next will be the prime focus as ECB President Christine Lagarde takes the stage in the wake of the biggest wave of attacks on shipping in the Middle East, where the over six-month long conflict is escalating again.
Markets brace for inflation data and policy signals
The euro EUR= was steady at $1.1637 ahead of the decision, while European stock futures STXEc1 pointed to a muted open.
