Last night’s ECB’s decision to stop accepting Greek bonds as collateral for funding was seen as an act of retaliation against the anti-bailout campaign pursued by the new Greek government. The news sapped appetite for both Asian and European markets despite yesterday’s PBoC decision to reduce its Reserve Requirement Ratio to 19.5%. The Euro traded in the mid $1.13 range for most of the day, for then rebound above $1.14 as talks between German and Syriza leaders improved. Meanwhile, oil prices reversed the upward trend as the EIA’s report showed higher crude stockpiles.
Trading might be subdued as investors’ await tomorrow’s employment report. The list of major economic releases includes the Jobless Claims report and Trade Balance data.