Remarks by ECB policymaker, Pierre Wunsch
report
He also adds that the central bank is „very far from conditions where we would consider hiking rates“, though he’s not shying away from calling for QE to end as per the above.

ECB announces their latest monetary policy decision – 22 July 2021
–  decision
– Deposit facility rate -0.50%
– Main refinancing rate 0.00%
– Marginal lending facility 0.25%

Some changes are expected but how material will they be?
After the strategy review findings earlier in the month , changes are imminent to the introductory statement by the ECB later today.

Latest data released by CBI – 22 July 2021
Of note, quarterly business optimism fell from +38 in Q2 to +27 in Q3. The drop in the order book balance i.e. headline reading is also the first since April, pointing to some stagnation in the recovery pace. That said, price expectations also declined for the first

A look at what is on the board for today
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But if anything, both the ones for EUR/USD and AUD/USD look to be magnets in keeping price action more anchored before rolling off later in the day.

Further remarks by Broadbent
On his final remark, he’s alluding to the fact that there might be negative inflation seen in some categories around this time next year i.e. shipping costs and commodities, after the rise due to pent-up demand and economic reopening from this year.

Higher Treasury yields is helping to see yen crosses a little higher today
After Monday’s sharp drop, USD/JPY saw a solid rebound yesterday and that is continuing today as Treasury yields are also bouncing back.

The effects of the pandemic continue to reverberate in Japan
Private sector members of a key government panel has called for the federal government to step up aid to small firms seeking to raise wages as part of efforts to prop up spending on tourism, restaurants and other sectors impacted by the pandemic.

Forex news from the European trading session – 20 July 2021
Headlines:
Markets:
– CAD leads, NZD lags on the day
– European equities higher; S&P 500 futures up 0.6%
It was a quiet session in terms of headlines as the market sought a bit of a breather after the sharp and heavy moves seen yesterday – where risk trades

Keep an eye on the bond market
European indices have trimmed its earlier advance and while US futures also did briefly pull back a little, the modest gains are still maintained for the most part as we start to move towards North American trading later.