There is no trade call for the session, however we will look to upcoming data for any potential opportunities.

Current Market Sentiment:

Early in yesterday’s NY session we saw the ECB’s rate announcement which contained no surprises. As expected there was no change to any of the key interest rates. Draghi was dovish during the post meeting comments where he highlighted increased downside risks to the EZ due to rising uncertainty for emerging market economies, increased volatility in the financial and commodity markets, as well as geopolitical instability. The EUR saw weakness across the board on the back of the dovish tone with the EURUSD falling over 140 pips after the comments.

The Philly Fed Index showed that the factory sector continued to slow, however not as much as was expected printing at -3.5 versus the consensus of -5.9. US Weekly Jobless Claims posted a sizable 10K rise to a higher than expected 293K, the highest reading since July.

Finally, crude oil inventories continue near record highs, up 4.0 m barrels. Gasoline inventories rose another 4.6 m after jumping 19 m barrels over the prior two weeks. WTI has found a temporary bottom for the session, rallying back up to the $30 handle.

There was no major data out during the Asian session, however Asian stocks have rebounded strongly during the session with help from the ECB and rallying oil.

Coming up during the London session we have French and German Flash manufacturing and Services prints, followed by the most recent UK Retail Sales figures. Check out this weeks risk event video here to learn more about these releases.

This article originally appeared at Jarratt Davis.