The President of the European Central Bank, Mario Draghi had a speech in the U.S. session on Thursday where he talked about the current economic stability and growth perspectives of the Eurozone. He pointed out that the price pressure is certainly there for the medium term while the recent key economic indicators show that there is a massive room for improvement that we have to work on.
The key fact that worried the euro currency investors was regarding the implicit hint towards the lowering of the interest rate where Draghi said that the ‘accommodation needed stance’ could be an option to support the economy as long as needed. The pair fell around 100 points from 1.2985 till 1.2885 with an hour.
Pound plunges as Carney Takes Charge
The ex-Governor of the Bank of Canada took charge as the Governor of the Bank of England where he spoke regarding the current situation of the U.K economy, where members of the committee decided to vote in favor of keeping the interest rate and as well the asset purchase facility to the same level i.e. 0.5% and 375 billion respectively.
Carney highlighted the actual state of the economy where he stated that although there are signs that indicate that the economy is in the process of recovery, but it is well below the historical standards and may face a stagnant or slacking situation in the near future. The investor confidence in the currency fell immediately due to this dovish statement and the GBP/USD fell by more than 200 points yesterday where bears took it from the 1.5245 level down till 1.5020.
Construction sector sees positive Movement for Australia
The AIG Construction Index for Australia experienced a notable positive change where the index rose till 39.5 level, up from its previous level of 35.3. This index is based on the surveys of 120 construction companies where the level of production, deliveries, employment, and prices level is also determined to some extent. The construction sector remains ‘not-up-to-the-mark’ as the index remains well below the 50.0 level.
Investors eagerly waiting as Job numbers are due
The investors are eyeing on today’s release of the U.S. unemployment and non-farm employment change data where the number of jobs to be added is expected to fall by around 12,000 whereas the unemployment level is expected to fall to 7.5% down from 7.6%. This data release would certainly impact gold prices where one-sided data could give a clear direction for not only the metal but as well as the U.S stock market.