Today’s calendar does not feature any important news releases. Therefore, the aftermath of the ECB conference will still be digested. The overall consensus of the meeting was that it was not very pessimistic, since rates were left unchanged and the Bank decided to keep the QE purchases at 80 bn a month. Price action in the markets was tight, as the EURUSD initially rebounded but then returned to pre ECB levels.
Currencies: EURUSD opened the day at 1.1232. reached 1.1330 highs before closing the day at 1.1267. the range in EURUSD is very tight with this unlikely to change until the FOMC meeting on September 21st. GBP/USD bounced along with the Euro and rose to a high of 1.3335. The Pound remains resilient overall, as recent UK economic data has been better than expected by many market participants. The Yen gained overnight, as news of a North Korea nuclear test led to a slight risk-off sentiment in markets. USD/JPY declined from 102.50 in the early Asian session to a low of 102.00.
Stocks: U.S. stocks on Thursday closed lower after the European Central Bank keeps key interest rates steady but disappoints some by not announcing additional measures to boost Europe’s sluggish economy. The S&P 500 closed down 4.86 points, or 0.2%, at 2,181.30, The Dow Jones declined 46.23 points, or 0.3%
Oil and Gold: Oil prices jumped on the weekly Crude Oil Inventories Report , adding to gains made late Wednesday on similar data from the American Petroleum Institute. WTI futures for October settled at $47.62 per barrel, a gain of more than 4.%. Gold prices weakened briefly after U.S. initial jobless claims decreased by 4,000 to a six-week low of 259,000 from the previous week’s total of 263,000. Analysts expected jobless claims to rise by 2,000 to 265,000 last week. Gold is sensitive to moves in U.S. rates. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.