After holding off for as long as it could, Sweden’s Riksbank was finally forced to follow many other developed market central banks by initiating a Zero Interest Rate Policy (ZIRP).
If we were to a make a list of things that are currently overshadowing today’s Riksbank decision, the list would include at least this morning’s stellar Non-Farm Payrolls Report, the ECB meeting, and the long Independence Day weekend for U.S. traders.
The euro strengthened the most in eight weeks against the dollar after European Central Bank President Mario Draghi said data suggest the region’s economy will stabilize this year.
U.S. stocks fell for the first time in four days after Google Inc. reported lower-than-estimated earnings. The yen weakened, while Spain’s bonds rose as the nation raised more than planned at a debt sale.
The yen slipped to the weakest level in almost two months versus the dollaron speculation that the Bank of Japan will boost stimulus measures sapped demand for the nation’s assets as a haven.