European Central Bank President Mario Draghi had a particularly interesting speech in which he mentioned that his institution is ready to act, stating, “We stand ready to adjust our policy stance further.”
With no major economic data on the calendar and sunny summer weather beckoning outside, it almost feels as if traders are stretching the weekend out for another day before trading can start in earnest tomorrow.
The inflation data recently released out of Germany was slightly above forecasts, thus being supportive for the SEP13 Euro’s strength, pushing it above 1.33 before some profit-taking occurred. We believe the Euro will continue to be strong.
In a weird way it was nice to focus on good old fashion oil fundamentals. Like refinery explosions, hurricane threats, the Energy Information Administration Short Term Energy Outlook and a surprise drop in crude supply.