At the following Press Conference ECB President Mario Draghi said that ECB will continue its policy of low interest rates for extended period of time; well past horizon of asset purchases. Following comprehensive package of decisions taken in early March, broad financing conditions in the euro area have improved, Draghi noted. Domestic demand continues to be supported by monetary policy measures, according to Draghi.
In the US session Unemployment Claims and Philly Fed Manufacturing Index figures were released. In the week ending April 16, the advance figure for seasonally adjusted initial claims was 247,000, a decrease of 6,000 from the previous week's unrevised level of 253,000. This is the lowest level for initial claims since November 24, 1973 when it was 233,000. The 4-week moving average was 260,500, a decrease of 4,500 from the previous week's unrevised average of 265,000. There were no special factors impacting this week's initial claims. This marks 59 consecutive weeks of initial claims below 300,000, the longest streak since 1973.
Separate report on Philly Fed Manufacturing Index showed that the index for current activity decreased from 12.4 in March to -1.6 this month. Analysts were expecting smaller decrease to 8.1.The index had turned positive last month following six consecutive negative readings. The current new orders and shipments indexes also fell this month. The percentage of firms reporting a rise in new orders was exactly offset by the percentage reporting a decline. The unfilled orders and delivery time indexes suggested weakness, as both indexes were in negative territory this month. Firms continued to report overall declines in inventories.
From Eurozone, tomorrow, French and German Manufacturing and Services PMI figures will be released. French PMI is expected to increase slightly, while German PMI report should show no significant change. There will be no data releases in the US part of the session.
Figures to watch:
French Flash Manufacturing PMI/French Flash Services PMI (Friday 9:00)
German Flash Manufacturing PMI/German Flash Services PMI (Friday 9:30)
