Bell FX Currency Outlook: ECB comments spur markets along as President Mario Draghi announces the ECB is ready to do whatever it takes to preserve the Euro.

Australia: The Australian Dollar is more than half a US cent higher, reaching USD1.0425 overnight as Draghi's comments encouraged markets and saw the US dollar lower across the board.

Rhetoric such as this has been made previously with no decisive action taken. With a lack of economic news, the comments were a vote of confidence and reaffirmed that the ECB will fulfil its lender of last resort function.

In Australia today there are no key data releases due out, therefore we expect the dollar to hold onto its overnight gains.

Majors: US initial jobless claims fell sharply overnight with fewer Americans filing for jobless benefits. The figure decreased by 35,000 to 353,000.

A surge in demand for aircraft and military hardware overshadowed a drop in business equipment spending, as US Durable
Goods orders rose 1.6% in June. US equity markets rallied as comments from ECB president Draghi inspired hope of another round of liquidity.

The S&P 500 and Dow Jones both finished the session 1.7% higher at 1,360 and 12,888. European equity markets also rallied as Mr. Draghi's positive comments also encouraged the use of the EFSF bailout fund to intervene in rising Spanish and Italian Bond yields.

The German DAX finished 2.8% higher at 6,583 whilst the FTSE ended 1.4% higher at 5,573.

Oil prices also rose overnight off the back of Draghi's comments and a weaker US dollar. WTI closed 1.1% higher at USD 89.43 per barrel, with Brent futures closing 1.5% higher to USD 105.4 per barrel.

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