Yesterday the Euro remained under pressure falling to an 11 year low as ECB President Draghi outlined the plans for the QE program. Draghi confirmed that the purchases will amount to €60bn per month and will include debt negative yields. This hurt the single currency as the market was not expecting the central bank to buy debt with a negative yield. Draghi also stated that the program will begin on the 09/03/15 and that bond buying could extend beyond September 2016 if required; opening the door for further expansion. Further to this, the ECB President predicted that inflation will be anemic in 2015 due to the low oil price, whilst it will rise to 1.8% in 2017.
Meanwhile the BoE held interest rates as expected whilst initial jobless claims from the US missed forecast, posting its worst reading in nearly a year. Unemployment claims in the US registered a reading of 320k against a forecast 293k.
Today will be dominated by the US labour data with the release of the Non-Farm Payrolls, the unemployment rate and average earnings. Labour data as a whole will be crucial as the FOMC are focusing on employment in the US as one of their indicators for a rate hike.