ECB expects Eurozone to grow at fastest pace since 2007

Another meeting and another cut-and-paste policy announcement from the European Central Bank. Rates stand pat and the current pace of asset purchases will be maintained at least until the next policy meeting. Despite this, the Bank’s inflation forecasts were notched lower (a direct result of the flying single currency) which could relieve some pressure on Mario Draghi & Co to move on tapering their asset purchase program any time soon. Nonetheless, Mario appeared particularly comfortable over the current strength of the euro which has given investors another excuse to buy up the currency and send EUR/USD back above 1.20.

Trump makes a deal on the debt ceiling

Trump has recovered ‘The Art of the Deal’ by gaining an agreement with Congressional Democrats to extend the US debt ceiling until December as well provide funding for the recovery and clean-up from Hurricane Harvey. Trump’s decision to make a deal with Democratic representatives has apparently left Republican leaders ‘shell-shocked’ and left the Treasury secretary cut off from being able to come to an agreement himself.

Waiting for UK output data

There is little on the UK data docket today and sterling could easily take its cues from the opening of the 2nd reading of the EU withdrawal bill in the Commons today. More important will be tomorrow’s output numbers from the construction, manufacturing and industrial sectors.

The day ahead

Japanese GDP, a speech from Fed’s Dudley and Chinese trade balance are on the docket, but focus will remain on the fallout from the European Central Bank’s ongoing press conference.

Have a great day.