Market Drivers May 5, 2020
- German court rules that parts of ECB QE violate EU charter
- Investor sentiment dented
- -2.84%
- -3.33%
- UST 10Y 0.66%
- Oil $24/bbl
- Gold $1698/oz
- $9023
Asia and the EU
- AUD RBA Statement unchanged
- GBP UK Final Services PMI 13.5
North America Open
- USD ISM-Non Manufacturing 10:00
German Constitutional court issued a ruling questioning some of the provision of the ECB QE bond-buying program, flipping market sentiment in early European dealing and sending below the 1.0900 figure.
The court did not rule that the QE program violated the EU charter but asked the ECB for clarification that the program was “proportionate” to the response. In the end, the legalistic objections of the German court are unlikely to amount to much, but the optics of the ruling along with its usual Teutonic bluntness truly spooked the markets sending EUR/USD lower by 70 pips and reversing a string rally equities with 30 minutes of the…
