Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:
Main Trading Event Of The Day: CAD Employment Change @ 12.30 GMT
WHAT WE’RE WATCHING TODAY
Euro Wobbles On ECB’s Cautious Stance, Dollar Wavers
The euro was on the backfoot early today after European Central Bank President Mario Draghi struck a cautious note on the euro zone economy. The European Central Bank’s decision yesterday to leave interest rates unchanged was not unexpected, but Draghi said the Ukraine crisis threatened the economy and weakened the euro. The euro traded little changed at $1.3360 after falling about 0.15 percent overnight. The currency which hit a nine-month low of $1.3333 on Wednesday stands to lose about 0.5 percent on the week.
Traders are also watching out for the outcome of the Bank of Japan’s monetary policy meeting later in the day for any cues. While the BOJ is expected to stand pat on policy, a weaker assessment of the economy by policymakers could stoke expectations of further monetary easing and dent the yen.
Draghi Blames Italy As Recession Tarnishes Euro Area
Mario Draghi has blamed Italy itself for its third recession since 2008.The day after data showed the euro-area’s third-biggest economy unexpectedly contracted last quarter, the European Central Bank president singled out his country’s lack of structural reform and the disincentive for investment it engenders. This followed an opening statement regarding the region’s uneven recovery. The comments may increase pressure on Italian Prime Minister Matteo Renzi to turn around an economy with youth unemployment above 40 percent and a recession that threatens the 18-nation currency bloc’s nascent revival. The ECB president’s comments on his homeland were blunter than normal, adding to the contrast with countries such as Spain that have engaged in more structural adjustments.
Gold Climbs To 3-Week High As Iraq Tensions Rise
Gold has advanced to the highest level in three weeks, due to end the longest run of weekly losses since September as haven demand increased on unrest in the Middle East and tension over Ukraine. Bullion for immediate delivery rose as much as 0.5 percent to $1,318.72 an ounce, the highest since July 18. A fourth day of gains would make it the longest rally since June. Fighting in Ukraine and the Middle East helped gold rebound this year from the biggest drop in more than three decades. Gold has risen 1.9 percent this week even though the dollar reached a nine-month high against the euro on signs the U.S. is recovering while Europe’s economy falters. Prices dropped for the previous three weeks. European Central Bank President Mario Draghi yesterday signaled monetary policy will diverge from the U.S. for an extended period of time.
That sums up today’s highlights! Don’t forget to keep in touch via the social media platforms for all the latest trading updates of the day. We hope you have a profitable day on the markets.
