Poor US Data to Force Draghi's Hand

More disappointing US data confirm the case for the Fed to downgrade its growth and inflation outlook, which will likely weigh on the USD as the statement is released at 14:00 ET (19:00 London time).  Weaker than exp ADP came in at 119K from a downward revision of 131K (158). The services ISM slowed to 50.7-- its lowest since December, while both of the employment and prices paid indices tumbled. And so with the FOMC surely expected to downgrade its economic view today, the ECB has little choice but to cut rates in order to avoid another excessive euro rally, that's detrimental to the recession-bound Germany. We issued 2 new Premium trades in USDCAD and EURJPY seen in the latest Premium Insights