- Draghi reiterated forward guidance, negative rates and bond purchases being considered
- U.S. ISM non-manufacturing PMI up from 51.6 to 53.1 vs. 53.5 estimate
- U.S. trade deficit widened to 42.3 billion USD
- U.S. initial jobless claims at 326K
- Canadian trade balance showed 0.3 billion CAD surplus
Count on Draghi to cause a ruckus! As I mentioned in my London session recap, Draghi’s remarks usually spark volatility for euro pairs and the latest ECB press conference was no exception. Staying true to his forward guidance, the ECB head shared that one of his major concerns is that of economic stagnation. He even went on to say that options for further easing, namely negative deposit rates and large-scale bond purchases, were discussed and that the ECB would act swiftly if necessary.
Over in North America, U.S. data came in mostly weaker than expected yet traders still started pricing in good expectations for the upcoming NFP release. The U.S. trade deficit widened from 39.3 billion USD to 42.3 billion USD while initial jobless claims turned out a higher than expected reading of 326K. The ISM non-manufacturing PMI improved from 51.6 to 53.1 but fell short of the consensus at 53.5. As for Canada, its trade balance came in line with expectations with the previous 0.3 billion CAD deficit turning into a 0.3 billion CAD surplus.
There are no major reports lined up for today’s Asian trading session so major pairs might be in for a bit of consolidation right until the New York hours when the U.S. jobs report will be released. Make sure you check out Forex Gump’s article on the 5 Things to Remember When Trading the NFP if you’re planning to make pips off the event!
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!