EUR/USD is flat ahead of the ECB meeting. the choice is expected in simply a couple of hours, yet the firecrackers will probably be later in the day at Mr. Draghi's question and answer session. Merchants can anticipate that the Governing Council will simplicity arrangement unassumingly at this gathering, through a little cut in key rates or liquidity activities. Aggressive unconventional policies remain distant. The ECB may introduce new liquidity measures today to counter tightness in funding conditions, but we think they will most likely not deliver additional rate cuts or monetary policy accommodation.
GBP/USD gave up 16 points to trade at 1.6610 after UK services PMI missed expectations and also printed lower than last months. It is not a major upset to the markets but enough to see some traders moving away from the pound as the US dollar continues to climb. Sterling fell to a day’s low against the dollar and the euro on Thursday, after UK services sector expanded at a slower-than- expected pace in March.
AUD/USD eased by 33 points against a much stronger greenback after more data showed a steady recovery in the US economy. Retail sales in Australia missed expectations this morning and the trade balance widened more than expected but remain less than the previous months. In Australia, the RBA wants Australia’s biggest banks and building societies to pay a levy to help pay for a fund that will protect their own depositors in the event of a banking collapse.
USD/JPY soared to trade at 104.05 as the dollar gained momentum after the ADP data release on Wednesday showed that the private employers created more jobs than in previous months and there was a strong upward revision to the previous month. The Japanese yen declined against other major currencies in Asian morning deals on Thursday as investor sentiment rose on strong U.S. data and China’s mini stimulus package designed to boost spending on railways and tax relief for struggling small businesses.
Gold reversed course and begin to ease giving up $4.50 to trade at 1286.30 after climbing in the Asian session as high as 1293. Traders are beginning to take positions ahead of tomorrow’s NFP and after comment from several Federal Reserve members all saying that we would likely see an interest rate increase in mid-2015. Investors are waiting on a European Central Bank policy statement later in the session and monthly jobs data from the U.S. Friday.