European Central Bank’s Mario Draghi speech failed to bring volatility to the markets yesterday. ECB decided to remain interest rates at present levels but the omission of "lower" when compared to the prior statement which read "at their present levels or lower", was highly anticipated by the markets.
The biggest surprise however, was the outcome of the UK election, where the Conservatives party has lost its majority in the parliament. British pound has lost its ground and now is trading lower by 2 percent in comparison to the US dollar.On today’s calendar we have a batch of data from UK’s economy and employment figures from Canada.
- 9:30 am GBP: Manufacturing Production m/m. Last three readings of output value produced by manufactures disappointed significantly. Consensus for today’s readings is 0.8 percent rise with previous numbers at -0.6 percent.
- 1:30 pm CAD: Employment Change. May’s reading disappointed with 3.2K figures versus 20K market consensus. It was the first surprise to the downside with previous readings beating expectations. Today we will see it was just an incident or more significant change.
- 1:30 pm CAD: Unemployment Rate. Current unemployment rate is at 6.5 percent mainly beating expectations this year. Market consensus is at 6.6% level, a notch higher than previously.