Summary:

• New Zealand’s inflation slows down

• Investors await ECB meeting and post-meeting conference

• USD deepens declines

The long-awaited day has come. ECB’s first meeting of the year looks promising given recent strength of the single currency as well as more hawkish attitude of some central bankers. European are trading mixed ahead of this major event. NZD is currently the strongest currency from the G10 basket. Gold inches higher while oil extends gains after another decrease of inventories.

The Norges Bank took a decision on monetary policy keeping all rates unchanged in line with expectations of all 26 analysts surveyed by Bloomberg. Even so, the domestic currency strengthened to some extent as the Norwegian central bank is still seen raising rates later this year.

Bitcoin has been moving up over the course of the recent hours however sellers seem to still keep control on the market. From a technical point of view one may notice that the price has been moving of late within an ascending triangle pattern but bulls have already come to an end.

European benchmarks opened on more or less the level of yesterday’s close amid mixed earnings reports with DAX opening slightly lower. After the trading session kicked off increases were posted by majority of the major stock indices from the Old Continent.

It was a bit of shock when the NZ inflation report was released sending the domestic currency vastly lower. However, downbeat moods did not last too long as USD weakness came back and therefore helped other currencies in the G10 group.

In today’s calendar we have a plenty of important events planned. However, the most important one is unquestionably ECB meeting. Investors wonder how will President Draghi address recent euro rally and more hawkish Minutes from December’s meeting. Apart from that, a pack of US and Canadian data is going to be released in the afternoon.