- Euro dominating the headlines
- Draghi opens the door to further cuts
- CAD inflation figures this afternoon
The Euro dominated the agenda yesterday as the European Central Bank left interest rates on hold as anticipated. It seems that the committee will concentrate on implementing existing policy measures rather than contemplating new ones, which is not really the biggest surprise as the latest raft of easing measures were only announced in March. Proposals for helicopter money and purchasing equities were also batted off by Mario Draghi in the press conference. The Euro caught a bid tone until the press conference before falling back into recent ranges. Currently the single current is sitting on the 1.1275 support and with only PMI data due this morning is likely to remain in the 1.1250-1.1350 range.
This afternoon Canadian core and headline inflation date is due and is likely to have fallen further below the Bank of Canada 2% target. Retail sales are also expected to fall from January's robust reading. The Bank of Canada is, however, unlikely to change its stance and revise easing expectations. The Loonie will probably be more sensitive to the oil price and the risk environment rather than domestic readings in the short term.
Today is relatively light on tier one data with only Purchasing Managers Indices and industrial orders and sales due from the Eurozone this morning and Canadian inflation data this afternoon. Markets are likely to remain range bound as traders square up books ahead of the Federal Reserve meeting next week.
Today's Major Economic Releases
Market |
BST |
Data/Event |
Previous |
Expected |
EUR |
09:00 |
E19: "Flash" manufacturing PMI, index |
51.6 |
51.9 |
EUR |
09:00 |
E19: "Flash" services PMI, index |
53.1 |
53.5 |
EUR |
09:00 |
E19: "Flash" composite PMI, index |
53.1 |
54.5 |
CAD |
13:30 |
Canada: Retail sales, % m/m |
2.1 |
-0.8 |
CAD |
13:30 |
Canada: CPI, % m/m (y/y) |
0.2 |
0.4 |
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