ECB's Draghi stresses importance of EU banking union

FXstreet.com (Barcelona) - ECB president Mario Draghi, who spoke today at a conference in Frankfurt, said that the Eurozone is gradually coming out of the debt crisis and that the upcoming stress tests for banks should restore investor trust in the region's financial sector.

He emphasized that the creation the Eurozone banking union should improve the condition of the financial sector in the area, where currently big differences between interest rates on loans exist. The ECB´s assessment of European banks, which includes stress tests and balance sheet reviews and kicks off this month, should enhance confidence in the sector.

The ECB will announce its monetary policy decision on Thursday. Even though analysts don't expect any moves from the central bank this month, the bleaker Eurozone economic picture, painted today by the European Commission in its forecast report, put more pressure on the central bank to cut rates.

Flash: The ECB doing homework, EUR/USD to weaken through trendline? – Societe Generale

Sebastien Galy, analyst at Societe Generale said that the ECB published a paper on the feasibility of counter cyclical buffers this morning, ahead of the ECB meeting. In the business of signalling, this is stating we are doing our homework.
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USD/CAD slightly lower due to the US dismal consumer spending report

The USD/CAD grinds slightly lower after the US Redbook weekly sales released at dismal levels.
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