ECB Keeps Rates at 0%

The Dow Jones swung from positive to negative several times during the trading session but ultimately closed 0.4% higher. The fallout from the tariff announcements is still settling as it was announced that Canada and Mexico would be exempted from the steel and aluminium tariffs. Other countries will be invited to negotiate exemptions although which countries that will be is still to be determined.

US 10-year bond yields have been consolidating in the 2.80-2.90% range over the past couple of weeks as the rapid rise in yields from February has stalled. The market still expects a rate hike this month but it appears any further steepening of the yield curve has been put on hold for now. Oil prices have fallen further with WTI now trading at US$60.32 per barrel. This follows on from an increase in inventories last week, the fifth increase in the last six weeks.

The AUD has fallen against the USD over the last 12 hours, breaking back below US$0.78. The decline comes on the back of a rise in the US dollar index which has been hovering around 90 over the last couple of weeks.

Last night the ECB decided to leave interest rates at 0% but has decided to wind back the bond buying program by the end of the year. This will represent the last of the major central banks to finish their Quantitate Easing (QE) program which has now been running since 2015. Today the Bank of Japan will decide interest rates.      

Data Releases:

-    Japan Interest Rate Decision 12:00pm AEDT

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This article was written by William O'Loughlin - Investment Analyst, Rivkin Securities Pty Ltd. Enquiries can be made via or by phoning +612 8302 3633.

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This article contains information about foreign exchange contracts, which are considered complex financial products. Please click here to read ASIC's foreign exchange trading article before considering an investment in foreign exchange contracts. 

This article contains information about CFDs, which are considered complex financial products. Please click here to read ASIC's "Thinking of trading contracts for difference?" document before considering an investment in CFDs.
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