Yesterday’s main focus surrounded the ECB and its President, Mario Draghi who led the ECB press conference shortly after the Central bank rate decision. The ECB, as expected left rates unchanged and QE constant at €80bn. Shortly after Mario Draghi held the ECB press conference, where he suggested that the ECB needed to see how the current stimulus measures, announced only last month will affect the economy before making any other monetary policy decision. The ECB said “the focus now is on the implementation of the additional non-standard measures” decided last month. Draghi also said that the ECB have not talked about helicopter money (a form of stimulus used in Japan), leaving the markets with a relatively hawkish tone and the Euro higher across the board yesterday afternoon.
In terms of data, the UK released their retail sales figure early yesterday morning, whilst the US posted the Philly Fed Manufacturing Index in the afternoon. Firstly, retail sales in the UK disappointed, missing expectations and posting over a two year low of -1.3% for the month. Across the pond, the US registered the Philly Fed Manufacturing which also failed to meet economists’ consensus, registering a poor figure of -1.6, its worst reading this year.
The week ends with a host of manufacturing and services PMI releases from the Eurozone. Both manufacturing and services in the single currency union are forecast to increase slightly, adding evidence to the stability of the Eurozone region. In the afternoon the US will post their manufacturing PMI gauge, with a slight increase expected.