6 Feb 2014
European open: ECB in focus on Eurozone deflationary concerns
FXStreet (London) - Overnight, the heavy selling of the Nikkei saw some respite, holding losses at 0.18 percent. The yen managed to pare any early losses, returning close to its opening price after some choppy trading.
AUD consolidated after a strong surge on stronger-than-expected trade balance numbers, posting a 468m trade surplus compared to the expected -300m trade deficit. The unexpected shift pushed AUD/USD up 0.43 percent.
Today’s interest rate decision by the European Central Bank will dominate, after another fall in Eurozone inflation numbers. Last week’s print of 0.7 percent, declining from 0.8 percent heightens speculation surrounding the rate decision and accompanying statement. Recent reports that the ECB is planning on ending the securities markets program could be confirmed in today’s meeting, though it will have little impact on Eurozone deflationary concerns.
By contrast, the Bank of England rate decision is likely to be a complete non-event. Mark Carney has already been consistent in brushing off any rumours that the faster-than-expected decline in unemployment would push him to hike rates earlier than expected.
Canadian trade balance numbers are likely to be further bad news, with an increased trade deficit.
US focus is on tomorrow’s non-farm payroll print. However initial jobless claims due today will act as a warm up act to the NFPs with consensus expectations of a drop from 348k to 335k.
AUD consolidated after a strong surge on stronger-than-expected trade balance numbers, posting a 468m trade surplus compared to the expected -300m trade deficit. The unexpected shift pushed AUD/USD up 0.43 percent.
Today’s interest rate decision by the European Central Bank will dominate, after another fall in Eurozone inflation numbers. Last week’s print of 0.7 percent, declining from 0.8 percent heightens speculation surrounding the rate decision and accompanying statement. Recent reports that the ECB is planning on ending the securities markets program could be confirmed in today’s meeting, though it will have little impact on Eurozone deflationary concerns.
By contrast, the Bank of England rate decision is likely to be a complete non-event. Mark Carney has already been consistent in brushing off any rumours that the faster-than-expected decline in unemployment would push him to hike rates earlier than expected.
Canadian trade balance numbers are likely to be further bad news, with an increased trade deficit.
US focus is on tomorrow’s non-farm payroll print. However initial jobless claims due today will act as a warm up act to the NFPs with consensus expectations of a drop from 348k to 335k.