ECB keeps rates unchanged. Announces terms of the TLTRO
The ECB kept rates unchanged, extended the expectations for rates and announced the terms of the TLTRO. The EURUSD rallied on the news and pushed it to the strongest of the major currencies. Draghi to come at 8:30 AM ET. The weakest is the dollar as the market continues to price in a rate cutting Fed sooner rather than later.
The EURUSD range is up to about 70 pips, above 22 day average (red line in the lower chart below). On the other extreme is low trading activiity in the AUDUSD and NZDUSD (with ranges of only 22 and 18 pips). The dollar is trading at its lows vs. all the major pairs for the day.
In other markets:
- Spot gold $1337.20, up $6.90 on back of the weaker USD
- WTI crude oil is up $0.47 at $52.15. THe low reached $51.27 before rebounding.
IN the pre-market for US stocks, futures are implying higher levels on the back of rate cut hopes and hopes of a US Mexico agreement before the Monday deadline. They will start meeting at 10 AM ET today. Yesterday's meetings did not lead to an agreement.
- Dow, up 69 points
- S&P, up 8 points
- Nasdaq, up 24 points
In the US debt market, yields are lower:
