Draghi talks down euro
The euro is trading at $1.2738, down 0.3% on the day as the European Central Bank president pledges to keep policy loose. This comes less than one month after cutting interest rates to a record low. Pressure is mounting on Mr Draghi as deflation fears in the eurozone persist. Adding to the euro’s woes is the buoyant economy, as yesterday US new home sales jumped to a six-year high.
The US will announce the initial jobless claims report at 1.30pm (London time). Analysts are expecting a reading of 294,000 and as long as the figure comes in below 300,000, it will add to the strength of the US dollar which could push to the euro to $1.2712.