UK in focus
A much busier day today as far as announcements are concerned, but it is the UK where most attention is directed towards.
The EUR/USD is currently trading not far from where it opened yesterday but there were still some big movements in between. The pair opened at $1.18669, then fell to a low of $1.18214 a few hours later. It performed a 180 degree turn from that point, rally to a high of $1.18968 over the ensuing hours. It pulled back from that high to be currently trading at $1.18507. The GBP/USD followed a similar pattern, leading to a suggestion that perhaps the movement was due to a weakening and a strengthening of the USD. The pair dropped to a low of $1.34890 in early trading before taking off over the next few hours to a high of $1.36064. Like the euro pair, the pound retreated from those highs, currently trading at $1.35446.
The Dow put in another strong performance yesterday. It gained over 200 points from its early low of 24,302.00 to reach 24,504.58, then it dropped 180 points to 24,323.00 then it rallied to a high of 24,589.38. It has come off those highs slightly, trading at 24,527.80. The Dax ended the session much stronger, overcoming a decline of around 70 points and a session low of 12,892.10. The Dax turned that setback around to charge to a high of 12,999.80. The Dax closed at 12,980.00.
The day ahead is packed full of data and announcements, headlined by the interest rate meeting in the UK. Interest rate meetings tend to bring with it plenty of volatility as policymakers outline monetary policy settings and economic outlook for the short and long term. Accompanying the interest rate decision is the release of the Asset Purchase Facility data. This outlines the bond buying that the government undertakes to help stimulate the economy. Other data set for release today includes:
China – CPI & PPI
Canada – NHPI
Australia – MI Inflation Expectations
Japan – Economy Watchers Sentiment, M2 Money Stock
NZ – RBNZ Governor Adrian Orr speaks, FPI, Business NZ Manufacturing Index
US – CPI & Core CPI, Unemployment Claims, Natural Gas Storage, Federal Budget Balance
Europe – ECB Economic Bulletin, Italian Industrial Production, Swiss, German & French bank holidays
UK – Manufacturing Production, Goods Trade Balance, NIESR GDP Estimate, Construction Output, Industrial Production
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