EU Morning Report - ECB and BoE to shake the markets

The euro (EUR) strengthened against most of its major counterparts, ahead of a day that may prove to be one of the most pivotal in the eurozone’s history. The European Central Bank (ECB) will announce its lending rate and as that is expected to remain unchanged, worldwide attention will turn to the press conference that will follow at 12:30 GMT. ECB President Draghi is expected to reveal details on how the central bank will act, within its mandate, and proceed into bond buying. We believe it is these details or the lack thereof, which will move the euro (EUR) violently either way. The US dollar (USD) will also experience heightened volatility, as the ADP employment report due at 12:15 GMT is considered a good indicator of the Non-Farm payrolls release due tomorrow.

§ Gold (XAU) has pierced through the 1700 area against the US dollar (USD), early in the European session and higher highs should be expected.

§ OIL rebounded off the 94.10 support area against the US dollar (USD). The Crude Oil Inventories print due today at 15:00 GMT will be a catalyst for the commodity’s price progression.

§ The Australian dollar (AUD) welcomed a strong boost, following better than expected labor data overnight and risk sentiment will either support or halt this retracement.

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