ECB goes the extra mile - The ECB's...........>

FOREX: ECB goes the extra mile

- The ECB's delivery of an extra E600bln in asset purchases as part of its PEPP

asset purchase programme went over and above market expectations today, with the

bank also extending the duration of purchases well into 2021. The policy shift

saw peripheral European government bonds soar alongside the single currency,

which rallied sharply against most others in G10.

- The sharp upside in EUR was most notable against USD and JPY, which are both

looking to secure their ninth consecutive positive session. EUR/USD now faces

key resistance at $1.1368/69, but a break above here will open the YTD highs of

$1.1495. Equities suffered an increasingly rare downday, although equities still

hold just below the recovery highs.

- Friday's Nonfarm Payrolls release tails off the week nicely. ADP employment

change and the ISM gauges generally fared better than expected, which may see

markets head into Friday's headline with an optimistic tone. The US are seen

shedding just shy of 8mln jobs across May, with the unemployment rate adding

another 5 percentage points to 19.5%.