Once again Mr. Draghi of the ECB got markets hoping
Today’s Reports and Announcements of Significance to the Market
Today’s Major Economic Events: Below you will find the top tier economic events for today. These events have the ability to move the markets. If you want to learn more about understanding these reports and the economics calendar, contact iOption live chat and asked to be enrolled for our webinar about trading the economics calendar.
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Date |
Time |
Currency |
Event |
|
Feb. 08 |
05:30 |
CNY |
Chinese CPI (YoY) |
|
|
05:30 |
CNY |
Chinese PPI (YoY) |
|
|
05:30 |
CNY |
Chinese CPI (MoM) |
|
|
08:15 |
CHF |
Retail Sales (YoY) |
|
|
13:15 |
CAD |
Housing Starts |
|
|
13:30 |
CAD |
Employment Change |
|
|
13:30 |
CAD |
Trade Balance |
|
|
13:30 |
USD |
Trade Balance |
Global Markets
GLOBAL MARKETS
Yesterday was a big day with the ECB and the BoE meet. As expected both central banks held rates and policy. Once again Mr. Draghi of the ECB got markets hoping. Though he took a fairly neutral stance, he stressed in his press conference that the European Central Bank was independent and not at the will of political pressures. He said that the currency markets would determine if the value of the euro was too high or too low, that it was not the job of the ECB to set currency rates or defend the currency. The euro began to tumble during his press conference and ended down for the day as US saw a rather lackluster unemployment print. US Markets ended the day flat, with the S&P 500 down by 0.2% and the TSX closing essentially unchanged. European equities were strong in Germany following a decent industrial production print for December, while the FTSE 100 is down on the day
The US initial jobless claims came in at 366k for the week ending Feb. 2. It seems as though after a strong spell in mid-January when jobless claims were in the 330-340 range, the rate of firing seems to have reverted to the low end of the 360-390 range seen before Hurricane Sandy distorted the series.
Global Currency
EURO DOLLAR
The euro is trading at 1.3410 on Friday morning regaining a few pips as Asian traders take advantage of the price drop to pick it up on the cheap. Mario Draghi’s press conference although not intended to do so, started the euro fall. Traders were hoping for more positive words from the central banker.
THE STERLING
Yesterday Sterling climbed after the Bank of England held rates and policy, markets were split on whether Governor King would call for more stimulus. Also Mr. Carney’s testimony eased some worries over his upcoming tenure at the BoE. The pound is trading at 1.5727. The UK saw a surprising good print of PPI and CPI also.
ASIAN CURRENCIES
The Japanese yen remains extremely weak trading at 93.51 during Friday’s session. The yen remains at recent highs even after drifting downwards as many traders sold off at the 93.50 price to book profits. Global speculators remain worried about the unlimited easing and stimulus promoted by the Prime Minister and the longer term effects on the currency.
Metals and Energy
GOLD
GOLD remains flat, trading at 1671.65. Precious metals remain weak with no direction as international central bankers have started to ease up on stimulus. Inflation seems to be holding an even line and markets do not seem to see any safe haven trading at this time. Even though Thursday was an eventful day on the eco calendar, equities, commodities and currency all traded reserved. The only big shift was the euro.
CRUDE OIL
CRUDE OIL remains elevated trading at 96.10 after falling below the 96.00 price level on Thursday. Traders seem to be showing a delayed response to a higher than anticipated EIA inventory along with an easing in global tensions. Traders are eagerly awaiting data from China to see demand requirements.
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