The ECB kept rates unchanged at 0.00%. However, Draghi emphasized that the ECB is monitoring economic conditions and are ready to act. Also, the ECB President expressed concern about the manufacturing sector and refused to comment on a potential rate cut before seeing the next round of economic projections. Finally, Draghi mentioned that the ECB may consider a multi-tier deposit rate in order to compensate banks for lower rates, as well as, the possibility of a new bond buying program.

USD strengthens on positive economic data

Yesterday, the US Durable Goods figure was released in the European afternoon. The figure came out at +2.0% much higher than the +0.7%, that was forecasted. The news gave a boost for the greenback as it signals the US economy is expanding. In the previous days, this was also confirmed by the IMF which increased US growth expectations to 2.6% for 2019. Despite the USD moving higher, strong movement was also observed on XAUUSD prices which dropped significantly. Gold prices lost approximately 15 USD upon release of the news. Analysts also site the upcoming meeting in Beijing between US and Chinese officials as positive for the USD. Now, focus is placed on next week’s FOMC interest rate decision were the market could be seeking a rate cut

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