Daily Market Report – 06/06/2014

GBP:
The Interest Rate decision was announced by the Bank of England and came out as
expected and unchanged at 0.5%. This is no surprise as they have
stated they will not be changing interest rates in the near future until real
wages begin to rise and the economy gets closer to full capacity.

EUR:
The European Central Bank announced that  interest rates across the

GBP:
The Interest Rate decision was announced by the Bank of England and came out as
expected and unchanged at 0.5%. This is no surprise as they have
stated they will not be changing interest rates in the near future until real
wages begin to rise and the economy gets closer to full capacity.

EUR:
The European Central Bank announced that  interest rates across the
Eurozone lowered  to 0.15% from 0.25%. And it has also taken the
historic decision to impose negative interest rates on the region’s banks.

It cut the deposit rate to -0.1% from 0.0% where banks will essentially be
charged to hold funds with the ECB to encourage banks to lend to businesses or
each other. 

In a bid to get credit flowing to parts of the economy that need it, the ECB
also opened a 400-billion-euro ($542 billion) liquidity channel tied to bank
lending and officials will start work on an asset-purchase plan.

The ECB president signalled policy makers are willing to act again in order to
try to revive the economy and bring inflation back up to the 2% target range,
with inflation still falling and currently at 0.5%

USD:
The Initial Jobless Claims released by the US Department of Labour  which
is a measure of the number of people filing first-time claims for state
unemployment insurance came in at 312,000 – a rise of 8,000 and 2,000 higher
than predicted.

Continuing Jobless Claims released   which is the number of individuals
who are unemployed and are currently receiving unemployment benefits was estimated
to go up to 2.625M from 2.623M but actually fell to 2.603M.

Key Announcements:
09:30 â€“ GBP – Total Trade Balance
For April 
13:30 – USD – Non farm Payrolls for
May  Expected to decrease to 218K from 288K
13:30 – USD – Unemployment Rate for
May – Expected to fall to 6.4% from 6.3%

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