The DAX index continues to show volatility this week. After sharp losses on Tuesday, the DAX has reversed directions on Wednesday. Currently, the DAX is at 11,902, up 0.44% on the day. In economic news, there are no German or eurozone events on the schedule. On Wednesday, the ECB will set its monthly interest rate and release a policy statement. On Thursday, Germany posts consumer inflation and investors will also be keeping an eye on the OPEC meetings in Vienna.
With the economic outlook in the eurozone looking bleak, will the ECB send a gloomy message to the markets? The ECB is expected to maintain interest rates at a flat 0.00%, where they have been pegged since March of 2016. . Investors will be more focused in the rate statement, as a dovish message to the markets could push the euro lower. ECB policymakers have acknowledged the slowdown which has gripped Germany and the eurozone. The manufacturing sector has been particularly hard hit, as a slump in global demand has hurt exports, such as German cars and auto parts. Last week, the ECB minutes from the March meeting were pessimistic, as policymakers acknowledged that the economic outlook remained bleak. If the rate statement and comments from Mario Draghi disappoint investors, the DAX could lose ground.
