All eyes on non-farm payrolls following ECB announcement yesterday
City Index June 6, 2014 2:46 PM
<p>A historic day in the ECB’s history and for most other central banks yesterday, when the ECB dropped their bank deposit rates to a negative […]</p>
A historic day in the ECB’s history and for most other central banks yesterday, when the ECB dropped their bank deposit rates to a negative 0.1 to try and increase lending. They also cut the main benchmark rate to 0.15% from 0.25% to entice more borrowing. Only time will tell if the measures taken yesterday are enough to prolong QE, which most see as inevitable and a possible next step for the ECB if all else fails. The euro had a lot to take in after the announcement first was the initial sell off down to the four-month lows around 1.3502, then a big bounce back up to make new highs of the day at 1.3650. This was due to the press conference and Mario Draghi suggesting that they are not finished yet and are ready to use unconventional policy measures to try and boost inflation if the actions taken yesterday do not work.
Today we have another big day as we see the non-farm payrolls from the US. The consensus on this is 218k, which is lower than its previous 288k, but still indicative of a growing economy. It also shows resilience in the US economy after the slump caused by the bad winter.
Supports 1.3605 1.3575 1.3500 | Resistance 1.3675 1.3700 1.3730
Supports 102.15 101.75 101.35 | Resistance 102.50 102.80 103.00
Supports 1.6760 1.6720 1.6685 | Resistance 1.6820 1.6875 1.6920
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