ECB remained on hold, EUR/USD drops

1. ECB decided to remain on hold keeping interest rates at 0.00% yesterday and the EUR/USD dropped some 100 pips in total.
2. In the accompanying statement the comment about keeping the interest rates unchanged and the QE program until September and beyond if necessary, was repeated, making the statement sound a bit dovish.
3. In the following press conference Draghi’s comment that data point toward moderation of expansion stands out.
4. Overall should there be further lukewarm financial data form the Eurozone we could see the EUR weakening further.

North and South Korea in historic meeting

1. North and South Korean leaders joined hands in a historic meeting at the Korean demilitarised zone earlier today.
2. The two leaders seemed relaxed and confident with each other sparking new hopes for the Inter-Korean relationships.
3. On the other hand western analysts remain cautious as similar meetings in 2007 and 2000 did not generate the expected results.
4. Should there be further improvement in the Inter-Korean relationships we could see uncertainty fade away in the region.

Today’s other economic highlights

• France: Preliminary GDP for Q1, Survey: +0.4% qoq Prior: +0.7% qoq, 05:30 (GMT), could weaken the EUR
• Preliminary CPI (EU Norm.) for April, Survey: +1.7% yoy Prior:+1.7% yoy, 06:45 (GMT), could weaken the EUR
• UK: Nationwide House Price Index for April, Survey: +0.2% mom Prior:-0.2% mom, 06:00 (GMT), could strengthen the GBP
• Preliminary GDP for Q1, Survey: +0.3% qoq Prior: +0.4% qoq, 08:30 (GMT), could weaken the GBP
• Eurozone: Final Consumer Confidence for April, Survey: -0.1 Prior: +0.4, 09:00 (GMT), EUR could weaken
• Germany: Unemployment Rate for April, Survey: 5.3% Prior:5.3%, 08:00 (GMT), neutral for EUR
• Unemployment Change for April, Survey: -15K Prior: -19K, 08:00(GMT), bearish for EUR
• US: Preliminary GDP for Q1, Survey: +2.0% qoq, Prior: +2.9% qoq, 12:30 (GMT), could weaken the USD
• Final U. Michigan Sentiment for April, Survey: 98.0 Prior: 97.8, 14:00 (GMT), neutral for USD
• Speakers: ECB members Yves Mersch (05:45 & 08:00, GMT), Sabine Lautenschlager (06:45 GMT) and BoE governor Mark Carney (14:00 GMT) speak.

IronFX Daily Report – April 27th