Closely Watching The ECB

Published 02/05/2013, 06:00 AM
Updated 05/14/2017, 06:45 AM

The positive employment figures announced in the United States on Friday are favourable to risk taking and propelled the Dow Jones Index above 14,000 points, a five-year high. Rising stock prices have resulted in a favourable wealth effect that is supporting the recovering economy.

This week, we will be closely watching the European Central Bank (ECB) and the Bank of England for any news concerning their respective monetary policies. The improving credit conditions in Europe combined with expansionary monetary policies in the U.S. and Japan favour the euro, which is up sharply against the yen and the greenback. Given this context, it will be interesting to see what comments ECB President Mario Draghi will make when he announces the ECB's rate decision.

After a recent bumpy ride against the greenback, the loonie is gathering strength and has moved north of parity once again. Crude prices are also rebounding and coming up fast on $100 a barrel. Wishing you a great week! Emmanuel Tessier-Fleury

Range of the day: 0.9945-1.0000
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