ASIA-PACIFIC

Asian equities closed mixed after the ECB cut the deposit rate further and oi prices continue to rise. The Nikkei 225 finished up 0.5%, the ASX 200 was up 0.4% but the Shanghai Comp could not follow suit, finishing down 0.4%.

Markets will potential open with some volatility on Monday post China`s releases of industrial Production y/y and Fixed Asset Investment ytd/y expected at 5.6% and 9.5% respectively.

USA

US equities closed mixed to negative as market forces battled it out, trying to properly price in what had happened in the ECB meeting. Indecision ruled and the DJIA finished down just 0.03%, the S&P500 finished up 0.02% and the NASDAQ finished at -0.15%. Us job data came out slightly positive but was overshadowed by the ECB with the Initial jobless Claims posting 259k vs 275K and Continuing Claims posting 2225k vs 2250k.

Today sees the release of Import Prices m/m being released at an expected -0.7%.

CANADA

More volatility is to be expected in CAD crosses as we see the release of the Employment Change and Unemployment Rate taking place today. They are expected at 10.2K and 7.2% respectively. Any upside surprises will fit in well with the technical bias in the market and we will see the CAD making new multi-week highs.

EU

The EUR was the most volatile pair of the day yesterday after the European central bank cut all the deposit rates. Though the 0.1% cut in the Deposit Facility Rate was priced in, the 0.05% cut in the Main refinancing Rate and the Marginal Lending Facility were unexpected and the EUR tumbled across the board falling to just above 1.0800 against the USD. However, these lows were not maintained as markets were proved right in not pricing in too much of a dovish biased pre the release, and we saw ECB President Mario Draghi’s hawkish speech received with open arms by EUR bulls, after he stated that a further cut in rates is not on the cards. This catapulted the EURUSD 400 pips higher to just above 1.1200.