Themes

• General mood is “risk off”
• ECB did not change the refinancing rate and plans to hike the interest rate next month as inflation concerns rise.
• U.S. unemployment claims reported 229K vs 205K expected.

What’s Moving

EURUSD dropped more than 100 pips and closed at 1.0620 level after ECB released the monetary policy at NY session.

Crude oil holds above 120.00 waiting for further instructions from Canadian Central Bank later today.

Gold stuck at the area of 1845.0 – 1850.0 even thought we have worse than expected unemployment claims.

Thoughts

ECB plans to hike interest next month while Fed with a high probability to hike interest again next week. Inflation looks like to peak in US with evidence from different economical figures, CPI should confirm on this and might change the risk sentiment before the FOMC next week.

The data and event calendar are light today, with little more than:

• Canadian Unemployment Rate
• US CPI / Core CPI
• US Consumer Sentiment

Pivot Points