Single currency on top as ECB shifts the......>

FOREX: Single currency on top as ECB shifts the blame to global risks

-Despite the ECB extending their forward guidance into the first half of 2020

and reaffirming the ECB's commitment to restarting QE should economic conditions

warrant it, the EUR surged on the back of the rate decision and subsequent press

conference, putting EUR/USD on track to close above the 100-dma for the first

time since late March. Markets judged the ECB's TLTRO terms as slightly on the

onerous side which Draghi himself clarified as being a 'disincentive' against

the previous round of TLTROs. This put the EUR on the top of the G10 table

Thursday, closely followed by the CHF.

-The DXY suffered under pressure from the firmer EUR, but ZAR and TRY pulled

back sharply, with USD/ZAR edging above 15 for the first time since October last

year as central bank independence risks run higher still. 

-Market focus shifts to Friday's nonfarm payrolls release (particularly in light

of the dire ADP release earlier in the week) as well as the Canadian equivalent,

German and French industrial production. Speeches are due from ECB's Nowotny &

Rimsvics and Fed's Daly.