All eyes on the ECB. European Central Bank decides later today on the interest rates and the market expects that Mario Draghi will deliver at leas a 10bps cut of the the deposit rate. What’s more, it is widely expected that the Bank will extend its QE and deliver a dovish message. If not, the euro will squeeze higher. The decision is due 12:45 GMT, and press conference starts 45 minutes later.
The US dollar was looking for some boost following a shaky start of the week and got it from both ADP and Yellen. The ADP, seen as the best gauge ahead of the payrolls that is available, showed a healthy gain in employment. Yellen was surprisingly hawkish. She made it clear the move in Dec was a done deal and did not try to dump expectations for hikes in 2016. The market will focus on her speech in the Congress later today.
Do not forget about important data today. ISM Non-Manufacturing is published 15:00 GMT, Initial Jobless Claims from the US are due 13:30 GMT and Factory Orders that are published with the ISM.