Vantage | Jun 03, 2015 08:31PM ET
Morning View:
The euro continued to drive markets overnight, with Mario Draghi’s ECB press conference the trigger.
Draghi expressed his disappointment with economic growth, and even laughed at the question that they are nearing their inflation target! This was the big one, as he went on to say that the ECB would actually look to add to policy and that QE is still moving full steam ahead. For the ECB, volatility isn’t an issue.
If you remember during last month, the ECB suggested the idea of front-loading their QE program to avoid any seasonal issues that could arise. This contradicts that notion, and bond yields reacted with sharp increases across the board, interpreting a more even spread of stimulus to be more beneficial on growth.
EUR/USD Daily:
Across the Atlantic:
With ADP Non-Farm Employment Change and Unemployment Claims coming in at expectations, it was up to the Fed’s Evans to spur the US side of the market:
"It is unlikely Fed should raise rates before 2016 as economic data has come in weaker than had expected for March."
"If Fed raises rates this year, it’s important it’s a shallow increase."
From a known dove, this rhetoric is important, as it re-enforces the notion that the Fed is inevitably going to be raising rates this year.
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On the Calendar Today:
Retail sales out of Australia during Asia. Price failed to follow through on yesterday’s good GDP number so if we get a miss here, things could get ugly fast.
AUD/USD Daily:
Tonight’s central bank action comes from the BoE and leads nicely into US Unemployment claims.
Thursday:
AUD Retail Sales
AUD Trade Balance
GBP Official Bank Rate
GBP MPC Rate Statement
USD Unemployment Claims
CAD Ivey PMI
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Chart of the Day:
NZD/USD Daily:
NZD/USD Hourly:
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