US dollar Remain unchanged ahead of the ECB rate announcement.

The US Dollar (USD) is trading largely flat on Thursday, holding onto gains made on Wednesday after US core inflation surprised to the upside. Following the US inflation report, markets have nearly fully priced in a 25 basis point (bp) rate decrease at the Federal Reserve meeting on September 18. Thereby ruling out the possibility of a greater cut. Meanwhile, markets will shift emphasis to the opposite side of the Atlantic Ocean. Where the The European Central Bank (ECB) is set to announce a 25-basis-point rate decrease.

Markets prepare for another round of data, including weekly jobless claims and PPI.

During the ECB rate decision, a very comprehensive data set from the United States will be released. Aside from the weekly Jobless Claims, the Producer Price Index (PPI) will provide additional insight into inflation. Expect some volatility across the board for both the Euro and the US Dollar. With the DXY US Dollar Index likely to move significantly.

Daily summary market movers: US Dollar approaching 102.00 and could break out of its previous range.

The European Central Bank (ECB) will receive the most attention this Thursday. With a 25 basis point rate drop almost certainly on the way. More crucial would be the statement delivered by ECB President Christine Lagarde following some alarming reports pertaining the economic performance of Germany and other Eurozone countries. The rate decision will be announced at 12:15 GMT. With the press conference beginning at 12:45 GMT.

Weekly jobless claims will be issued around 12:30 GMT, with initial claims predicted to rise slightly to 230,000 from 227,00.

In the United States, weekly jobless claims will be issued around 12:30 GMT. With initial claims predicted to rise slightly to 230,000 from 227,00. Continuing Claims was previously at 1.838 million.
The August Producer Price Index (PPI) will be announced alongside the weekly jobless claims:
The monthly headline PPI is predicted to expand at a steady 0.1%. While the annual headline PPI should fall to 1.8% from 2.2% a month ago.
The monthly core PPI is predicted to climb by 0.2% after remaining steady the previous month. While the yearly core PPI is forecasted Expected to rise by 2.5%, up from 2.4% in July.
The US Treasury will overwhelm the bond market with a 4-week bill auction at 15:30 GMT and a 30-year bond auction at 17:00 GMT.
Equities have priced in the Fed’s 25 basis point rate cut next week. And are rising on Thursday. The European Central Bank is also expected to drop interest rates, and European shares are up more than 1% on the day.
The CME Fedwatch Tool predicts an 87.0% possibility that the Fed will lower interest rates by 25 basis points (bps) on September 18, compared to a 13.0% chance of a 50-bps cut. For the meeting on November 7, another 25 bps cut (assuming September is a 25 bps) 49.3% expect a rate decrease. With a 45.0% chance of rates falling 75 basis points (25 bps + 50 bps) and a 5.6% chance of rates falling 100 basis points (25 bps + 75 bps).
The 10-year benchmark rate in the United States is currently 3.67%, up from a new 15-month low of 3.60%.