EU Morning Report - Draghi boosts the euro

The euro (EUR) appreciated against most of its major counterparts, following the European Central Bank (ECB) President Draghi comments made overnight. He pointed out that buying options of a maturity up to 3 years would not constitute state financing, something against the ECB’s mandate. Thursday’s press conference by the eurozone’s central bank is expected to set the tone for all the policymaking that will follow in the coming months. The US dollar (USD) highlight for today will be the Manufacturing Purchasing Managers Index (PMI) due at 14:00 GMT.

§ OIL is rebounding against the US dollar (USD) after violently dropping to 96.45 at the end of the European session yesterday. However, a break-and-hold above the 97.40 resistance level is needed to pave the way for higher highs.

§ The 2^nd quarter Gross Domestic Product (GDP) for Switzerland came out negative, and below expectations. Nevertheless the Swiss franc (CHF) reaction so far, has been muted.

§ The Australian dollar (AUD) strengthened significantly overnight as the Reserve Bank of Australia (RBA) chose not to proceed with a rate cut.

§ The British pound (GBP) is trading higher this morning ahead of today’s Construction Purchasing Manager Index (PMI) release.

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