BoE, incoming Fed Chair and Treasury Secretary in focus
A busier day for markets, with a lot more data available for people to sink their teeth in to.
The Euro rallied during the early part of the night, before sinking more than half a cent throughout overnight trading. The EUR/USD went from $1.19100 up to a high of $1.19611 before tumbling to its current level of $1.18997. It was a similar story for the GBP/USD pair. From $1.33090, it climbed as high as $1.33824 before falling to where it presently sits at $1.33208.
US stocks had a solid outing overnight, with all major stocks finishing the session ahead. The Dow climbed from lows of 23,496.00, to hit all-time highs of 23,636.30, before paring back some of those gains. It is currently trading at 23,589.00. The NASDAQ hit highs of 6,419.63 before retracing slightly to its current level of 6,409.80. The S&P 500 endured a wild night of fluctuations as it went from lows of 2,597.68, up to 2,606.65 before pulling back to where it is currently trading at 2,604.12. The DAX showed some signs of life early on, heading as high as 13,116.84 the tumbling over 100 points to where it currently sits at 13,010.70. It was the same story with the FTSE. It was off to the races early on, rocketing over 40 points to 7,436.60, but then tumbled over 50 points to where it is now at 7383.80.
Looking ahead to the events of the day and most of the interest will surround the UK Bank Stress Test Results and a speech by BoE Governor Mark Carney. The bank stress tests are vital to get a good understanding of the strength of UK banks. This will then tie into a speech by the BoE Governor. The US will have a couple of vital speakers addressing different engagements. The first is by the incoming Fed Chair, Jerome Powell. This speech will be crucial to help determine how the Fed Reserve will be run under his chairmanship. The other is a speech by Treasury Secretary Steve Mnuchin. As he is responsible for putting together the new tax plan, it will be critical to get an update on how these plans, as well as other economic reforms, are going. Other data set for release today includes:
NZ – RBNZ Financial Stability Report
UK – BoE Financial Stability Report, FPC Statement
Canada – RMPI, PPI, BoC Financial System Review
Europe – German Import Prices, European M3 Money Supply, European Private Loans, German GfK Consumer Climate
US – Goods Trade Balance, CB Consumer Confidence, Richmond Manufacturing Index, Prelim Wholesale Inventories, HPI, S&P/CS Composite-20 HPI, Fed Reserve Member Patrick Harker speaks