Draghi dents the Euro ahead of NFP
City Index December 7, 2012 2:10 PM
<p>The ECB press conference and in particular the Q&A session sent the single currency into free fall yesterday afternoon with the euro cross market taking […]</p>
The ECB press conference and in particular the Q&A session sent the single currency into free fall yesterday afternoon with the euro cross market taking the brunt of the move. The ECB statement downgraded economic forecasts as had been widely expected by the market with the Bundesbank following suit this morning on the German economy forecasting 2013 GDP to 0.4% from 1.6% taking the single currency to fresh weekly lows.
The key to yesterdays move was a question from the media as to how the ECB could add stimulus to the economy if outright QE wasn’t an option and had negative rates on deposits been discusses? The answer was yes although the ECB President refused to elaborate further adding to the Euro woes was a flat refusal on the Spanish request for a commitment to a 200 basis point cap on the spreads between German bund yields and the Spanish bund yield.
Today’s highlight will be the US jobs report at 1.30pm this afternoon where my esteemed colleague from across the pond points out the outlook isn’t great with the recent ISM employment component coming in at 50.3 from 54.9, the JOLTS (job openings) at 3561 from 3653 and this week’s ADP printing 118k from 157k.
Hurricane Sandy looks to subtract between 100-150k from the NFP number today with most looking for a rise of 50k with a slight rise in the unemployment rate to 8% from 7.9%.
Supports 1.2920-1.2880-1.2820 | Resistance 1.2980-1.3010-1.3090
Supports 82.00-81.60-81.40 | Resistance 82.60-82.85-83.20
Supports 1.6000-1.5980-1.5960 | Resistance 1.6080-1.6130-1.6175
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