[DanRath]

Trading Strategy — Accommodative Policies: After much anticipation and suspense, both the ECB and the FED were mostly inline with broad expectations after their meetings. The ECB began its short term funding program with a well subscribed EUR448bn auction. Consensus expectations hovered around the EUR500bn area. The FED later committed to maintaining low interest rates to support economic growth. However, they didn't provide much additional color regarding their Treasury repurchase program set to begin in the Fall. Neither committee hinted at a rate hike or a possible exit strategy. Nonetheless, the actions of both committees are pro-cyclical as they are both supporting accommodative policies . The equity price action didn't agree. The Dow gave up its gains to close down 23.05. The Euro continues to trade range bound. 1.3750 is a key level to the downside. USDCAD has made a significant move over the last two weeks. It has been noticed demand comes from real money and corporates all looking to buy USD. US initial jobless claims rose 15,000 to 627,000 last week, the forecast was 600,000.