Euro Forex Market Steady as ECB Results Awaited

• ECB President Speech and Review Results to Come
• US Jobless Claims also in Focus
• Markets Suffer as China Cracks Down

The Euro traded slightly lower today remaining just under the 1.18 mark ahead of a key speech from ECB President Christine Lagarde and the release of information from a strategic review the bank has carried out which was delayed by the COVID-19 pandemic. Results could have a widespread impact on the Euro and broader forex market. US jobless figures will also be looked at in detail when they are released later today with analysts expecting another dip in the number. Chinese companies trading on Wall Street have also been hit hard this week as Beijing clamps down on many of its big hitters.

Lagarde Speech Set to Garner Attention

ECB President Christine Lagarde is set to speak later today in a speech that could provide direction to those forex trading the Euro and beyond. She is expected to speak on the results of the ECB review which she started in 2020 but the results of which had been delayed by COVID-19. With the review completed yesterday, data could be published today and traders are keeping a close watch.

Any changes could provoke a move in the EUR/USD even as the Dollar enjoys a strong period despite Treasury yields continuing to sink. The majority of attention surrounding the review results will be on any changes to their 2% inflation target while rumored changes in their calculation method could also mean a change in figures and the market. Employment and environmental mentions will also weigh heavily on how the currency reacts to the speech.

Jobless Claims Expected to Dip Again

The weekly US jobless claim numbers are also due later today from the Labor Department. Analysts widely expect this data is going to show a further drop to 350,000 new claims for unemployment benefits. This comes as many try to get back to work in an increasingly hot labor market where demand is outstripping supply in many sectors.

This downward trend has continued and the number today if it comes in below the previous week of 364,000 would mark a new pandemic-era low and may see an impact with forex brokers. Continuing claims also look set to drop with no sign that the concern over increasing delta variant cases numbers are impacting jobs.

Chinese Concern Rattles Wall Street

Even though the S&P 500 and NASDAQ both closed yesterday near new records, there is continuing concern from those on Wall Street about the approach of Beijing this week against many of the big-name China stocks. The comes in the wake of the Didi IPO which was not met well by Chinese regulators who advised the company to wait.

This has led to a backlash that has seen the popular ride-hailing app removed from Chinese app stores and created a wider feeling of trepidation around Chinese companies trading in the US. This looks set to continue into Friday with the futures market negative on all major indices.