Focus turns to Europe as its central bank holds its latest interest rate meeting.

The USD continues to weaken, helped along by the passing of the $1.9 trillion stimulus bill in the US. The EURUSD opened the day at $1.18989 and slid to lows of $1.18676 mid-session. Rebounding off those lows, the euro climbed to a late high of $1.19293. It is not far from those highs, currently trading at $1.19248. The GBPUSD followed an identical path to the euro after starting the day at $1.38899. The pound dipped to lows of $1.38445 mid-session before taking off, peaking at $1.39369 just before the close. It is now trading at $1.39295.

Indices went off to the races overnight, with the Dow and Dax both major beneficiaries of buoyant market sentiment. The Dow began the day at 31,857.22 and slipped to lows of 31,738.01 heading into mid-session trading. It rallied off those lows, surging to a high of 32,386.51 late in the day. It has come away from those highs slightly and is now trading at 32,314.25. The Dax opened at 14,439.78 and declined to lows of 14,388.67 early. Like the Dow, the Dax rallied off its low, hitting a high of 14,563.83 before closing at 14,560.70.

The day ahead sees the ECB wrap up its latest interest rate meeting. While interest rates are expected to remain on hold at 0%, remarks made by ECB chiefs will come into focus as markets look for any sign that there is further deterioration in the European economy.

Other data published today includes:

NZ – Business NZ Manufacturing Index

Canada – Governing Council Member Lawrence Schembri speaks

US – Unemployment Claims, JOLTS Job Openings, Natural Gas Storage

Europe – ECB Monetary Policy Statement, ECB Press Conference, Swiss SECO Economic Forecasts

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