Draghi’s comments push EUR/USD down sharply, USD up

•     Draghi’s comments push EUR/USD down sharply, USD up

–    Draghi Friday reaffirmed that ECB is looking at instituting QE early in 2015 if necessary

–    EUR/USD fell on Friday, gapped lower at the opening Monday

–    Eurozone bond yields fall further, US Fed Funds expectations fall

–    Commodity prices fall and so too do commodity currencies as inflation expectations fall

–    USD regains parity with CHF

•     IMF says USD gained share of reserves in Q3, EUR lost

–    Reports of the demise of the dollar are premature!

–    Suggests central bankers have more confidence in USD, less confidence in EUR

•     Today:

–    Eurozone: German CPI for Dec expected to slow = EUR-negative

–    UK:  Construction PMI for Dec expected lower = GBP-negative

•     This week:

–    Tue: Final PMIs for Dec, US factory orders

–    Wed:  Eurozone CPI for Dec, Fed minutes from latest meeting

–    Thu: Bank of England MPC meets; Eurozone PPI, retail sales for Nov

–    Fri:  US Dec NFP expected to be up +240k vs +321k, unemployment 5.7% vs 5.8%