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Word that the next ECB decision will be a “live meeting” spurred a rally for the shared currency.

Meanwhile, the dollar ended mixed as it mostly reacted to its counterparts, despite stronger than expected data.

  • U.S. ISM non-manufacturing PMI up from 56.8 to 58.6 vs. 57.9 forecast
  • U.S. final Markit services PMI upgraded from 55.7 to 56.8
  • U.S. JOLTS job openings increased from 6.63M to 6.70M vs. 6.49M forecast
  • Bloomberg report: ECB June 14 decision to be a “live meeting”
  • ECB official Weidmann: Italian politics signals bloc is not yet crisis-proof
  • New Zealand GDT auction yielded 1.3% drop in dairy prices

Major Events/Reports:

ECB to discuss end of QE?

Word through the forex ‘hood is that ECB policymakers are ready to debate when they should end the bond-buying program a likely “live meeting” next week.

According to euro zone officials familiar with the matter, the June 14 meeting could be a pivotal one that might conclude in an official announcement when the QE program might end. Then again, they also mentioned that it’s possible nothing will materialize just yet as Draghi might opt to use his July presser to make the announcement instead.

Upbeat U.S. data

Uncle Sam’s reports all came in the green as the services sector signaled a stronger than expected expansion for May.

The ISM non-manufacturing PMI rose from 56.8 to 58.6, outpacing the consensus at 57.9, to show a faster pace of industry growth led by higher production, employment, prices, and supplier deliveries. The index for new export orders ticked lower while backlogs increased.

The Markit version of the services PMI for the same month enjoyed a significant revision from 55.7 to 56.8 instead of staying unchanged as expected. This marked its fastest output expansion since April 2015 on account of “favorable economic conditions and greater client demand.”

Lastly, the JOLTS job openings figure advanced from an upgraded 6.63 million in April to 6.70 million in May instead of slipping to the projected 6.49 million reading.

Another round of risk-taking

Higher-yielders still managed to catch a few gains, with the Nasdaq chalking up yet another record-high close and commodities inching higher.

  • Dow 30 index is down 13.71 points to 24,799.98 (-0.06%)
  • Nasdaq is up 1.93 points to 2,748.80 (+0.07%)
  • S&P 500 index is up 31.40 points to 7,637.86 (+0.41%)

Crude oil advanced while gold also scored a few gains.

  • The precious metal is up to $1,296.76 per troy ounce (+0.37%)
  • WTI crude oil bounced to $65.24 per barrel (+0.77%)

Major Market Mover(s):

EUR

The euro was mixed leading up to the session. However, it later got a bullish boost from hawkish ECB chatter.

EUR/USD rallied from a low of 1.1652 to a high of 1.1733, EUR/JPY is up to a high of 128.92, EUR/GBP recovered from .8724 to a high of .8762, and EUR/NZD is up to 1.6683.

USD & JPY

The yen and the dollar found themselves on the losing end as risk appetite extended its stay for another session.

GBP/JPY advanced from 146.37 to 147.10, AUD/JPY climbed to 83.80, CAD/JPY recovered from 84.05 to 84.99, and NZD/JPY is up to 77.21.

USD/JPY was off to a weak start as it fell to 109.47 then turned around to climb to a high of 109.85, USD/CHF tumbled back to .9842, GBP/USD is up to the 1.3400 handle, and AUD/USD is up to a high of .7631.

Watch Out For:

  • 12:00 am GMT: Japanese average cash earnings y/y (1.4% expected, 2.0% previous)
  • 1:00 am GMT: New Zealand ANZ commodity prices (1.0% previous)
  • 1:30 am GMT: Australia’s Q1 GDP (How to trade this event?)