After the UK kept their interest rate
unchanged the EU did the same leaving their interest at 0.5%. The Euro followed the same pattern as the Pound
and fell against the US Dollar spooking investors.
ECB Governor Draghi spoke about the plan for the
Eurozone, to keep the interest rates at the
current levels with little
chance of a rate hike in the near future. Draghi made it very clear that the Euro-Zone will have low interest rates for some time.
With US banks closed today we should
expect to see very thin trading
ranges as the day goes on. We did see a rally in the Canadian Dollar this morning, after trading higher for
most of the early morning USD.CAD fell back to trade back near 1.0500 which was
a bit surprising as the US Dollar was very strong against both Euro and
Sterling.
Tonight will be the release of the
German factory orders which could cause some volatility in the Euro. The more
interesting report will be tomorrow when key employment data is released from
the US and Canada. These reports are highly anticipated and should cause some
volatility in the market when they are released.
Have a great evening
Yonah
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