The Euro trade stable and global stocks rise on Ukraine hopes

Good Morning,

- The Euro trade stable and global stocks rise on Ukraine hopes….with all eyes now on ECB & Draghi later today.

- Ukraine said on Wednesday its president had agreed with Russia's Vladimir Putin on steps towards a "ceasefire regime" in Kiev's conflict with pro-Russian rebels, but the Kremlin denied any actual truce deal. "The parties reached mutual understanding on the steps that will facilitate the establishment of peace," said a statement by Ukrainian President Petro Poroshenko's office, replacing an earlier statement that had spoken of a "permanent ceasefire". Putin's representative said the leaders agreed on steps towards peace but not a ceasefire.

- Ukrainian PM Yatsenyuk says no trust in Russian President Putin's peace plan for Ukraine.

- The euro already reflects the likelihood of an ECB asset- purchase program, according to currency strategists polled by Reuters, but it will probably continue to fall in the year ahead as a U.S. dollar rally gathers pace. Twenty-four of 33 analysts in the survey conducted this week said a move to begin QE was already priced in, indicating the euro may not fall much more than it already has once an announcement is actually made.

- Fed's Fisher: The U.S. economy is 'in a pretty good place,' adding that he believes it will soon be ready for gradual interest rate increases but stopping short of saying when. "I don’t think it would be much of a brake on the economy if we had a gradual increase in interest rates". As to when the Fed should start raising rates, he said, "My personal opinion is that the calendar has been moved forward, at least in my mind - how far forward, I couldn’t tell you right now."

- The U.S. economy expanded at a "moderate" pace across much of the nation in recent weeks, with the auto industry showing strong growth and banking conditions improving, the Federal Reserve said on Wednesday. In its Beige Book report of anecdotal information on business activity collected from contacts across the nation, the central bank said six of its 12 districts reported economic growth as "moderate." Labor market conditions, as measured by hiring trends, were reported to be relatively unchanged from generally modest rates in most districts, the Fed said. "Overall, price pressures remained largely unchanged," it added.

- UBS on EUR/USD: The pair trade flat and should remain range bound until the ECB decision on Thursday and Friday's US payrolls. We expect the heavy tone to continue and any correction towards 1.3250 should be sold. While support lies at 1.3105, the pair is likely to test 1.3000 sooner rather than later.

- The Bank of Japan maintained record stimulus to keep stoking inflation and boost economic momentum that’s been sapped by a higher sales tax. The central bank kept its pledge to increase the monetary base at an annual pace of 60 trillion yen to 70 trillion yen ($667 billion), the bank said in a statement today.

- Bank of Canada extended the country’s interest-rate pause to four years on Wednesday and remained neutral on his next move, citing slack in the economy that will keep inflation in check. Policy makers held the benchmark rate at 1 percent and said the recent jump in exports must be sustained before it triggers the business investment needed to bring the economy to full capacity over the next two years.

- Goldman Sachs has warned that the UK could fall into a eurozone-style crisis if Scotland votes for independence later this month. In some of the most bleak predictions economists have made about independence, the Wall Street bank said a "Yes" vote on September 18, while looking unlikely, "could have severe consequences" for both the Scottish economy and the UK overall.

- Watch today: German factory orders, Eurozone PMI, US jobs..and ECB !

Have a nice Day!