Friday 5th June 2020

The ECB announced that it will extend its bond buying program by a further €600b, with forecasts not expecting inflation to pick up for the next few years. NAB’s David de Garis says the pessimistic forecasts from the central bank assume no further fiscal stimulus from the ECB, which might be a realistic assumption given further resistance to an EU fiscal stimulus, with Finland now joining the frugal four. The strength of the Europe on the back of the ECB news has helped the Aussie dollar rise again, helped by job ads adding to hopes of a fairly rapid recovery. The non-farm payrolls umbers will give a clearer picture of unemployment in the US later on.