Buyer Beware: It's CB-Day and Draghi Has Some Defending To Do

Defending one sucker punch this week was never going to do it - softer US data yesterday honed in on a weakness in US employment forecasting. This morning it was activity in the Eurozone's private sector falling at a sharper pace last month that has had a few nervous position holders already trigger happy ahead of the day's main event. It's CB-day or Central Bank meeting day and for a change it's as much about the ECB and BoE as it was the BoJ last night.

Did the BoJ embark on its bold easing pledge to meet its +2% inflation target? Initial market thoughts and further Yen weak moves suggest that the BoJ's commitment to adopt 'monetary base control' their way is a strong enough message to the marketplace that they mean business. Governor Kuroda pledged to achieve a +2% inflation target in about two-years, while taking additional easing actions, such as increasing their JGB holdings at an annual pace of +JPY50T, with JGB holdings to double in two years. They will also...