ECB to drive EUR lower – Scogen

Kit Juckes, economist at Societe Generale explained that he thinks that if the ECB delivers a 20bp rate cut and a TLTRO extenbsion, they’ll achieve their unspoken gain of driving the Euro lower.

Key Quotes:

“No doubt we’ll dance around a fair bit between now and Thursday though…

Aneta Markowska described Friday’s US Labor Report as “A Goldilocks Report”. With solid job gains and no wage pressures. The 1.9% rate of growth in employment is going to go on lowering a respectable, if not spectacular, pace of demand growth. There isn’t much productivity growth but I still think it’s as wrong to look for a sharp slowdown in GDP growth, as it would be to look for 3% growth.

As for the entrails of the jobs data, this quote from the release was picked up by Megan Greene at ManuLife: “Job growth occurred in health care and social assistance, retail trade, food services and drinking places, and private educational services.” It’s not that people in work are seeing very low wage growth (though some are) but that the employment growth is in low-paying jobs.

Kit Juckes, economist at Societe Generale explained that he thinks that if the ECB delivers a 20bp rate cut and a TLTRO extenbsion, they’ll achieve their unspoken gain of driving the Euro lower.

(Market News Provided by FXstreet)