The ECB left policy unchanged and Draghi tried not to rock the boat. The institution remains very cautious on inflation and also on growth, and this is relatively dovish. On the other hand, they are pleased with higher growth in Q1, patting themselves on the back for the big package of stimulus back in March. In general, the ECB is in a wait and see mode and this is seen lackluster euro reaction.
With the Verizon strike skewing the jobs data, there is an even bigger focus on wages. 2.7% y/y or higher would boost the dollar while 2.3% would be bad. For the headline, the 120K-200K range should leave the focus on wages. It seems that a June hike remains off the cards, but July is certainly an option and this is a key release for that mid-summer meeting.
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