ECB President Mario Draghi addressed the market yesterday. Draghi was speaking at the Watchers Conference in Frankfurt yesterday morning. Draghi said that inflation in the Eurozone is still not strong enough for a shift to tighter monetary policy. The Euro weakened drastically after these dovish comments. Also on yesterday’s economic calendar was the US weekly jobless claims which posted a better than expected reading of 234k.
Economists’ were preparing to analyse a raft of key US labour data releases today, however this will now play second fiddle to last night’s US air strike on Russian ally Syria. President Donald Trump at around 4am (Syrian time) launched a missile attack on Syria. The action follows a suspected chemical weapons attack on civilians by the Syrian government. US-Russia ties will therefore be damaged after this act of aggression. Markets have remained relatively stable, with a small surge to safe haven currencies.
A busy end to the week as we gain high tier data from both the US and UK. Firstly, UK manufacturing production is expected to bounce back from negative territory to 0.3%. Shortly after, a raft of high tier labour data from the States is released. Unemployment in the US is forecast to remain at 4.7%, whilst the all-important Non-Farm payrolls is expected to post 176k.