In a similar move to that of Switzerland earlier this year, the Swedish central bank cut its main rate to -0.1% along with announcing a limited bond-purchase program. This “mini” QE sent the Krona to a four-year low against the USD at 8.48 as the move is expected to reinvigorate a slumping economy. European markets are currently surging higher as peace talks in Ukraine led to the signing of a cease-fire deal.
In Asia, equity markets were buoyed by the Nikkei 225 which rose 1.85% as the Yen weakened against the USD earlier in the day. The currency movement reversed after the BOJ stated that it won’t expand its stimulus program as it might be too large and counterproductive for the economy.
US Investors will likely focus on the retail sales data and weekly jobless claims report, once again looking for validation regarding the current strength of the American recovery.