UK data in focus
A much busier day for markets with a stack of information emanating from around the world, with the most significant coming from the UK.
The EUR/USD pair fell throughout the trading session yesterday as the Euro showed some signs of weakness after its latest push into $1.25 territory last week. Beginning the session at highs of $1.24119, the pair struggled and declined steadily until it hit lows of $1.23182. It has recovered a little, currently trading at $1.23376. The GBP/USD dropped to session lows of $1.39306 early before rebounding in strong fashion, climbing to session highs of $1.40239. However, it did pull back from those highs, currently trading at $1.39950.
The Dow had somewhat of a bumpy ride last night, falling 250 points from its early high of 25,234.94. It then jumped almost 200 points, before giving up all of those gains as it dropped over 300 points to hit session lows of 24,871.30. It is currently around 90 points off those lows, trading at 24,961.70. The Dax had a similar night of trading, reached session lows at the open of 12,332.70. From that point, it piled on more than 170 points to session highs of 12,505.72. The Dax, weighed down by the volatility in the Dow, fell over 100 points, before rebounding slightly to be trading at 12,431.45.
Looking at the day ahead and the most significant data is emanating from the UK. They are releasing Average Earnings Index (wage inflation) data. The BoE Governor, along with MPC Members, are also set to testify before the Parliament’s Treasury Committee about the country’s economic outlook and inflation. Both of these have the potential to cause volatility for the pound. Other data set for release today include:
China – Bank holiday
Australia – Construction Work Done, Wage Price Index, CB Leading Index
Japan – Flash Manufacturing PMI, All Industries Activity
US – FOMC Meeting Minutes, Flash Manufacturing PMI, Flash Services PMI, Existing Home Sales
UK – Claimant Count Change, Public Sector Net Borrowing, Unemployment Rate
Europe – European, German & French Flash Manufacturing PMIs, European, German & French Flash Services PMIs
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