ECB open to more policy easingMay 09, 2014 Posted by: Pete Karabatos
TheEuro is under significant pressure again today following yesterday’s ECBannouncement that left the door open to further policy easing in June. Draghi indicated that ECB is “comfortable”acting if economic data remains weak or is revised lower and expressedfrustration with a strong euro. The euro hit 1 month lows in early trading buthas since rebounded slightly. Separately,the CAD weakened by the most in 7 weeks following the release of the country’semployment data.
•U.K.industrial production was weaker than expected at 2.3% year/year (y/y) forMarch while manufacturing production was stronger than expected at 3.3% y/y.
• Norwegian underlying CPI was higher thanexpected, at 2.5% y/y vs. the 2.3% projection.
• China’s consumer inflation fell to an 18month low of 1.8% y/y while producer prices fell by 2.0% y/y.
• TheReserve Bank of Australia commented that accommodative policy “is likely to beappropriate for some time yet”.
• Canada’s unemployment rate remained steadyat 6.9% in April. This however maskssome underlying weakness as fulltime employment fell by 31k jobs and the laborparticipation rate fell from 66.3% to 66.1%.
05/12 CNY: Retail Sales(April)
05/12 USD: Monthly BudgetStatement (April)
05/13 EUR: ZEW EconomicGrowth Expectations Survey (May)
05/13 USD: Retail Sales(April)
05/14 GBP: JoblessClaims Change (April)
05/14 EUR: IndustrialProduction (March)
05/15 EUR: GrossDomestic Product (Q1 Advance)
05/15 USD: ConsumerPrice Index (April)
05/09 USD: Universityof Michigan (May Preliminary)
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