There were no data releases yesterday. Luxembourg Central Bank Governor Mersch talking to International Bankers Forum said that ECB has by no means run out of ammunition. It still has firepower and deposit rate theoretically are not at lower bound. He uttered that QE will run as long as necessary to reach their goal sustainably and that ECB can add on at anytime should this be necessary.
Unemployment for both the euro zone and the full 28-member European Union has hovered near double digits since 2012. This has prompted the central banker to prod member states into action to help drag the continent out of its prolonged economic slump. "Given continued high structural unemployment and low potential output growth in the euro area, the ongoing cyclical recovery should be supported by effective structural policies," Draghi urged in his December statement.
He has previously suggested EU states ease hiring and firing procedures as well as lower barriers to entry for certain trades, in order to boost job numbers. The latest figures from European statistics provider Eurostat said the euro zone jobless rate was 10.7 percent for October, down marginally from 10.8 percent in September and 11.5 percent from a year earlier and the lowest since January 2012.
With no major data releases from Eurozone tomorrow, we can expect less volatile morning part of the session, especially with continuation of holiday season. In the US session CB Consumer Confidence figures are scheduled for release. Analysts are anticipating increase to 93.9.
Figures to watch:
CB Consumer Confidence (Tuesday 16:00)
