EUR

The euro steadied despite another status quo message from the European Central Bank which reaffirmed that its low rate policies would remain intact for a while yet. Despite evidence of green shoots sprouting across the 19-nation economy, the ECB as expected left its trio of borrowing rates unchanged. The central bank also left the door unlocked to ramping up stimulus, if necessary, in the months ahead with underlying inflation stuck in a funk below one per cent. Bank chief Mario Draghi barked a familiar dovish refrain in post-meeting remarks to reporters.

GBP

The pound steadied after falling overnight to fresh seven-week lows against its US counterpart. Sterling had its decline slowed this week by the budget; Britain’s finance chief Philip Hammond presented to parliament forecasting a brighter outlook for growth this year. Mr Hammond’s sunnier outlook contrasts evidence of clouds forming on the horizon with inflation seemingly on a fast track higher, posing a significant threat to consumer spending, the main economic pillar since last summer’s surprise Brexit referendum. Weakness was on the cards for UK data yesterday on manufacturing and trade.

USD

With seemingly nowhere to go but up, weekly US jobless claims did just that in the latest period, rising by 20,000 to a still stellar 243,000. The previous number was the healthiest in more than 40 years. Recent data across the US economy suggest it’s ripe for a rate hike. That’s providing yesterday’s jobs report did not miss the mark which happened last spring when hiring slowed to 24,000 in May and delayed a rate hike until later in the year. A US jobs report that’s near or north of forecasts of 190,000, along with lower unemployment and higher wage growth, would cement expectations for the Fed to move, news that could see the dollar add to its winning streak.