The surprise decision by the ECB to cut interest rates and launch QE purchases in October sent shockwaves through global markets today sending European indices higher and EUR along with linked currencies like CHF sharply lower. This impact, however didn’t follow though to action in US indices which approached or touched new highs in the morning then faltered and finished down on the day. This action indicates that North American traders remain firmly focused on US data and what this week’s payroll numbers may mean for Fed policy going forward. Today’s ADP payrolls just above 200K were good but not too good, so there was no change to how much pressure the Fed is under to do something. With four FOMC members speaking today, we may get a better idea of which way they are thinking heading into their next meeting. US traders appeared reluctant today to drive indices even higher ahead of Friday morning’s big nonfarm payrolls report which could spark significant trading action. A big result could propel USD even further and spark a liquidity correction in stocks while a soft result under 200K could spark a correction in USD. Either way traders should remember the discussion continues to circle around when not if the Fed will start raising rates and cutting stimulus. Through all the turmoil of the day, JPY, AUD and NZD all held their ground or dropped only slightly against the rallying greenback. Asia Pacific indices were soft yesterday and we may see more of the same today as traders wait on the coming US news. CAD has been very active today and may continue to attract a lot of attention from traders right through to the end of the week. The loonie rallied on the back of a stronger than expected Canadian trade surplus Economic News Significant announcements released overnight include: ECB interest rate and QE benchmark lending rate cut to 0.05% from 0.20% Marginal lending rate cut to 0.30% from 0.40% Deposit rate cut to (0.20%) from (0.10%) ABS purchases (QE) to start in October details to come at Oct 2 meeting UK interest rate and QE 0.50% and £375B no change expected Sweden interest rate 0.25% no change expected Japan interest rate and QE no changes expected US ADP payrolls 204K vs street 220K, previous revised down to 212K from 218K US jobless claims 302K vs street 300K US trade balance ($40.5B) vs street ($42.4B) Canada trade balance $2.6B vs street $1.1B US Markit service PMI 59.5 vs street 58.5 US ISM non-manu PMI 59.6 vs street 57.6 US natural gas 79 BCF vs street 74 BCF US crude oil inventories (0.9 mmbbls) vs street (1.0 mmbbls) Upcoming significant announcements include: 3:00 pm AEST Bank of Japan monthly economic report 7:00 am BST Germany industrial production street 0.6% 8:30 am BST Sweden service production previous 2.6% 8:30 am BST Sweden industrial production street (1.1%) 8:30 am BST Sweden industrial orders previous (0.5%) 9:00 am BST Norway industrial production previous 3.2% 9:00 am BST Norway manufacturing prodn previous 3.1% 9:30 am BST UK inflation forecast previous 2.6% 10:00 am BST Eurozone GDP street 0.7% 8:30 am EDT US nonfarm payrolls street 230K vs previous 209K 8:30 am EDT US private payrolls street 215K vs previous 198K 8:30 am EDT US unemployment rate street 6.1% 8:30 am EDT Canada employment change street 10K vs previous 41K 8:30 am EDT Canada full-time jobs previous (18K) 8:30 am EDT Canada part-time jobs previous 60K 8:30 am EDT Canada unemployment rate street 7.0% 10:00 am EDT Canada Ivey PMI street 55.3 vs previous 54.1