- ECB held interest rates at 0% overnight. President Mario Draghi stating downside risks had diminished and economic recovery improving. Inflation remains subdued however, and Draghi dodged questions around French election questions.
- The EUR/USD moved on Draghi’s comments, struggling to break 1.095 and trading in an 80pip range. The Euro has retraced around 35% of this week’s move higher and with a Macron win expected traders likely to support the currency by dip buying in the near term.
- European equities ended the session down, DAX (-0.23%), FTSE (-0.71%), CAC (-0.31%).
- The Bank of Japan yesterday revised growth forecasts upward as they see the economy expanding. Inflation expectations were revised down to 1.4% during 2017-18.
- AUD/USD pressure continues, trading lows of 0.744 overnight. The Aussie down approx. 130 pips from Monday mornings’ highs. Consolidation below 0.75 level with economists expecting further weakness as the US economy picks up and Fed rate hikes unfold.
- Some average durable goods and jobless claims figures overnight, USD/JPY trading relatively unchanged from yesterday Asian session close.
- Oil broke the 200 dma support, trading lows of $48.32 due to oversupply concerns, while Gold continues to trade in the $1260 – 70 range for third day.
- Narrow ranges in US equity markets overnight as earnings season continues, Nasdaq hitting record highs.
- RBA Governor Lowe expressed concerns overnight regarding inflows of Chinese money. No commentary on economic outlook or monetary policy.
Today’s Economic calendar (AEST)
- 6:30pm UK Prelim GDP
- 10:30pm Canada GDP m/m
- 10:30pm US Advance GDP q/q
