BoE in focus

February 7, 2019

There’s a stack of data due out today which could bring volatility to markets.

The EURUSD continues to struggle as it endured another negative session. The pair opened at $1.14040 and lifted to an early high of $1.14091. It was mainly downhill from there as the euro declined to a very late low of $1.13596. The euro is trading near those lows, currently at $1.13644. The GBPUSD was a non-event overnight, remaining flat throughout the session. The pair opened at $1.29487 and traded in a tight range early, before dipping to a low of $1.29236. The pound climbed off that low and hit a high of $1.29790 a few hours later. However, it quickly gave up those highs and fell back to near those lows. It is currently trading at $1.29318.

The Dow remained largely flat as it took a breather from the rally it went through during the previous session. The index opened at 25,360.20 and was steady in early and mid-session trading. Late-session trading saw a bit of activity as the Dow fell to a low of 25,302.43 before climbing to a high of 25,432.03 just an hour later. It gave up some of those gains before closing at 25,364.03. The Dax was relatively quiet, turning negative as it consolidated itself after a big rally the day before. The German index opened at 11,356.79 and bumped up to an opening-hour high of 11,365.19. It quickly gave up those slight gains as it fell to a low of 11,294.69 just a few hours later. It remained near those for the rest of the session before closing at 11,305.19.

The day ahead sees the release of a host of data, with attention turning to the UK. The BoE will be holding a monetary policy meeting later tonight. While they are not expected to change rates, the language that BoE Governor Mark Carney uses to explain the economic outlook for the UK becomes important. The central bank will also be releasing its quarterly inflation report.

Other data released today includes:

Japan – Leading Indicators

UK – Asset Purchase Facility, Halifax HPI

Australia – NAB Quarterly Business Confidence

US – Unemployment Claims, Natural Gas Storage, Consumer Credit, Fed Chair Jerome Powell and FOMC Member Richard Clarida speak

Europe – German Industrial Production, French Trade Balance, Swiss Foreign Currency Reserves, Italian Retail Sales, ECB Economic Bulletin, EU Economic Forecasts


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