European Central Bank will announce its monetary policy later on the same day. ECB President Mario Draghi is expected to hold the benchmark rate and stimulus programs without any changes. Draghi said on Friday that very substantial accommodation is still necessary for the Euro zone despite the risk of deflation not being a growing concern.
A break in alarming political news lifted European stocks on Wednesday and cooled a safe-haven rally that saw the yen and gold at five-month highs and top-rated government bond yields at their lowest this year.
The U.S. dollar edged down slightly, as U.S. Treasury yields fell for the second day. Fed Chair Janet Yellen didn’t provide any new catalyst to traders about the prospects for a June hike or how the Fed will proceed with shrinking the balance sheet. She expressed her confidence that the economy will continue to grow at a moderate pace and that rates will increase gradually; however, this was nothing new to investors.