The ECB and its President, Mario Draghi, stole the spotlight yesterday. Firstly, as expected, the ECB kept their main benchmark rate on hold at record lows of 0% and their deposit rate at -0.4%. The decision to leave rates unchanged shows that the ECB does not see an immediate danger to the Eurozone recovery, even after the UK’s shock decision to leave the EU. Draghi then addressed reporters at the ECB press conference shortly after the announcement. Draghi said the ECB did not discuss an extension to bond buying, he went on to say that there is no need for extra stimulus “for the time being”, in a relatively hawkish press conference.
The economic calendar was relatively light yesterday, as there was one piece of high tier data released. US jobless claims bucked the trend of the poor US labour data and posted a better than expected 259k figure. Last week’s Non-Farm payrolls failed to meet economists’ consensus, so this piece of bullish data helped to boost sentiment for the US’s labour market.
Friday will be fairly light, with few top tier data releases. CPI and PPI data will be released from China at 2:30am. This is forecast at 1.7% and -1.0% respectively. At 1:30pm, Canada will post their Employment Change and Unemployment Rate data. Throughout the day, Eurogroup meetings will be held in Brussels. Ministers are expected to discuss the progress made in Greece, to achieve the milestones agreed in its financial assistance program. Their accomplishment will open the way for the disbursement of further financial assistance. At 12:45pm, FOMC Member Rosengren, is due to speak about economic forecasts at the South Shore Chamber breakfast in Boston.