Five central banks announced a coordinated plan Thursday to pump dollars into Europe's financial system in an effort to boost liquidity across the eurozone. The European Central Bank, along with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank will hold three dollar auctions for U.S. dollars, with a three-month maturity, through the end of the year. The coordinated move is aimed at providing U.S. dollars to struggling European banks that need the currency to fund loans and repay debt. All of the auctions will carry a fixed rate and be conducted as "repurchase operations against eligible collateral."
Among the economic data today, it is worth noting recently published statistics on CPI for August and Initial Jobless Claims last week. The number of IJC rose to 428K as an average forecast 408K. Also CPI rose to the level of 3.8% y/y against an average forecast of +3.6%. Were later released positive data on Industrial Production in the U.S. in August: the forecast drops in the last reporting period to 0.1% the actual value was equal to 0.2% compared to the previous month. But all of these rather weighty economic data had no significant effect on the market against the background of the main news of the day - the plan to increase liquidity across the eurozone.
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