ECB rates unchanged while US ADP prints solid report - Westpac

Sean Callow, Research Analyst at Westpac, notes that the ECB left policy unchanged, as expected.

Key Quotes

“Corporate bond purchases will start on 8 June, as announced in March. Its forecasts for inflation were modestly raised for 2016 but unchanged for 2017 and 2018. This was perhaps less optimistic than it could have been. The ECB is firmly in wait and see mode while it assesses the impact of its stimulatory programs. EUR/USD whipped around either side of 1.1200 as ECB president Draghi spoke but then ground down to 1.1150/60 in NY.

On the data front, US private sector employment (ADP) grew by 173k, exactly in line with the median forecast. The services sector outperformed the goods producing sectors in a solid report overall. Jobless claims were 267k for the latest week, vs 270k expected. They have been volatile since late March due to Easter, seasonal adjustment difficulties, and a large strike by telco Verizon.”