Recap 2-06-14




  • ECB hawkish relative to expectations. The market expected some sort of move toward unsterilization, but Draghi said it wasn’t even discussed.
  • US Jobless Claims declined to 331k vs 335k exp and 348k prev
  • US Unit Labor Costs declined -1.6% in 4Q vs -0.7% exp and -1.4% prev. Furthermore, the previous print was revised lower to -2.0%
  • Australia Retail Sales rose 0.5% MoM in Dec as exp
  • Australia Trade Balance jumped to 468M in Dec vs -200M exp and -118M prev. The prev print was also revised higher to +83M
  • Deputy Governor Kikuo Iwata dismissed the chance of an immediate expansion of monetary stimulus. "I am not too worried about the U.S. economy and therefore in terms of Japan’s monetary policy I think we can stick to our existing policy.” Hiroshi Nakaso, the other BOJ deputy governor, said officials will be vigilant – "If some kind of risk materializes, we will take necessary policy adjustments to ensure achievement of our 2 percent price target.”

Upcoming Data:

  • Thu: RBA Minutes, China HSBC Services PMI
  • Fri: US Employment, Canada Employment,
  • Mon: Canada Housing Starts, USDA Ag report, Australia Home Loans, NAB Business Confidence
  • Tue: Japan Money Supply
  • Wed: Australia Inflation Exp, Employment, UK RICS House Price Balance
  • Thu: US Retail Sales, Jobless Claims, Yellen Testifies,