ECB lowered its 2019 GDP forecast and revised upward for EZ’s unemployment rate. On top of these, the central bank injected new stimulus launch of a new TLRO in September 2019 and ending in March 2021.
EURUSD dive got both hands to 1.1200 but could not hold on. The single currency went into March ECB meeting on a dovish expectation as a result in response to the ultra-dovish tone the euro fell more than a percent against the dollar and European equity indices dragged down lower by 0.50% each.
With the European indices Dowjones (KTM:XUS30) down by more than a percent or 200 points.
“Annual real GDP increasing by 1.1% in 2019, 1.6% in 2020 and 1.5% in 2021. Compared with the December 2018 Eurosystem staff macroeconomic projections, the outlook for real GDP growth has been revised down substantially in 2019 and slightly in 2020.”
Compared with the December 2018 Eurosystem staff macroeconomic projections, “The outlook for HICP inflation has been revised down across the projection horizon, HICP inflation at 1.2% in 2019, 1.5% in 2020 and 1.6% in 2021.”
NFP: Market participants focus on February payrolls. We expect the data from the US continue to show a healthy labor market with little sign of a slowdown. Moreover, we also hope the unemployment rate likely to edge back to 3.9%.
In January 2019 total nonfarm payroll employment rose by 304k while the unemployment rate rose to 4.0%.
On Thursday the dollar index (KTM:DXY) rose by nearly 0.80%, refresh to a high of 97.65 by failed to breach the significant resistance.
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