Good morning,

– ECB's Draghi: If all central banks act to deliver mandates, global disinflationary forces can eventually be tamed. Also, imported inflation thanks to globalisation should eventually lead to higher prices elsewhere.

– The majors outperformed vs $USD on Wednesday. Strongest was $NZD with +2.33% spot-returns while $GBP was the weakest with +1.34% returns.

– EURUSD had a banner session yesterday. After rallying a massive 240 pips from low to high, the pair settled 45 pips above former confluent resistance at 1.1050. This level marks the December 2015 high and is also former trend line resistance that extends off of the prominent August 2015 high. Any rotation back to this former resistance area (new support) could make for a compelling buying opportunity. However, given the sheer size of yesterday’s move, I wouldn’t be surprised to see some consolidation above the 1.1050 handle before the next leg higher materializes. As for targets, buyers could run into some trouble around 1.1210, however, yesterday’s break could very well target former channel support extends off of the 2015 low. See chart below. On the flip side, a close back below 1.1050 would negate the bullish bias in the short-term and expose former swing highs near 1.10.

– The Bank of England deputy governor Andrew Bailey has said its first priority in the event of a Brexit vote is to keep financial markets stable and manage the impact on the British economy. Speaking at a Treasury committee hearing on the economic costs and benefits of the UK’s EU membership, Bailey said: “The first set of issues that I think would arise would be contingency planning around financial markets and broader macroeconomic fallout from the decision.” Brexit 'would trigger economic and financial shock' for UK Read more Questions over the consequences of a vote to leave the EU turned to the example of Norway, which is outside the bloc but a member of the single market. Bailey said a Norwegian-style outcome would mean copying EU law “but we wouldn’t really be involved in the process of creating it”. The other possibility, he said, would be at the other end of the spectrum, with a “more freestanding” UK that has bilateral arrangements with the EU.

– BOJ's Kuroda: Won't hesitate to expand stimulus if needed or target, BOJ won't target FX rates. BOJ has delayed timing of reaching target 3 times, expects CPI to reach 2% inflation around 1st half of FY 2017.Low risk of negative rates making bond buys difficult, doesn't think there is limit to BOJ easing program.

– The Australian Dollar renewed the upside push against its US counterpart, yielding the largest one-day rally in eight months. Critically, prices conspicuously failed to break back above the underside of a Triangle chart pattern whose breach marked the resumption of the Aussie’s multi-year decline. That seems to suggest gains are corrective. Near-term resistance is at 0.7172, the 61.8% Fibonacci retracement, with a break above that on a daily closing basis opening the door for a test of the 76.4% level at 0.7254. Alternatively, a move back below the 50% Fib at 0.7106 clears the way for a challenge of the 0.7016-40 area (November 10 low, 38.2% retracement).

– The governor of the Bank of England has been "too aggressive" in suggesting interest rates may rise, one of world's leading authorities on the turmoil in global markets has told the BBC. Dominic Rossi, the head of global equities at Fidelity, the world's second largest fund manager, said Mark Carney had confused the markets. He said the Bank had been "poor" at understanding why inflation was so low. He also said that interest rates were unlikely to rise in the near future. Deflation, he said, was more of a risk than inflation. His words are significant as Fidelity looks after millions of people's investments and and pensions, and invests billions of pounds around the world. Mr Carney has been criticised in the past for his policy of "forward guidance", where the Bank forecasts future economic trends and suggests when interest rate rises may materialise.

– Oil rose Wednesday after investors took advantage of a drop in the U.S. dollar and earlier weakness in the crude price, despite weekly data showing a surprisingly large rise in U.S. inventory. Russia also repeated its willingness to take part in talks with OPEC producers to cut output. U.S. crude CLc1 settled up 8 percent at $32.28 a barrel, while benchmark Brent crude LCOc1 settled up 7.1 percent to $35.04 a barrel. "We're getting the rally in crude oil from the pounding that the dollar is taking," said Robert Yawger, senior vice president of energy futures at Mizuho Securities USA. Financial conditions have tightened considerably in the weeks since the Fed raised interest rates and monetary policymakers will have to take that into consideration should that phenomenon persist, William Dudley, president of the Federal Reserve Bank of New York, told MNI in an interview.

Major news for today: BoE Official Bank Rate, Carney Speech, US Unemployment Claims, RBA Monetary Policy Statement, EUR ECB Draghi Speaks.

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