Packed day ahead as UK comes into focus

June 20, 2019

Another big day coming up for markets, with attention focussed on the UK as the US Fed Reserve leaves rates on hold.

The USD weakened overnight, sending paired currencies higher. The EURUSD began the day at $1.11916 and dipped to lows of $1.11857 early in the day. The pair came off those lows and climbed for most of the session. The Fed meeting saw some fluctuations, where the euro peaked at $1.12532 before giving up some of those gains shortly afterwards. It is currently trading at $1.12365. The GBPUSD followed an almost identical path. Starting the day at $1.25554, the pound dipped to early lows of $1.25410. The pair rallied off those lows to hit a high of $1.26733 late in the day. It has come off those highs and is currently trading at $1.26517.

The Dow remained rather flat overnight, seemingly not interested in the Fed’s interest rate meeting. The index opened the day at 26,482.96 and traded within a 100-point range for most of the day, falling to a low of 26,427.30 at the time of the Fed’s announcement. The small amount of volatility at the time saw the Dow peak at 26,586.59 during the same hour, where it remains in early Thursday trading. Like the Dow, the Dax was left uninspired overnight after starting the day at 12,338.90. The German index ticked up to a high of 12,350.89 early in the day before declining for most of the session. The Dax bottomed-out at 12,274.28 late in the day before closing at 12,310.29.

The day ahead is packed with significant data, with most of the crucial information emanating from the UK. The UK’s Monetary Policy Committee meets to discuss interest rates. While interest rates are expected to remain unchanged, the BoE Governor Mark Carney’s commentary supplementing the decision will come into further focus as he outlines the outlook for money policy settings and the economy in general.

Other data scheduled for publication include:

All – OPEC-JMMC Meetings

Canada – ADP Non-Farm Employment Change

Australia – RBA Bulletin, RBA Governor Philip Lowe speaks

UK – Retail Sales, Monetary Policy Summary, Asset Purchase Facility

Europe – Swiss Trade Balance, ECB Economic Bulletin, European Consumer Confidence

Japan – BoJ Policy Rate, Monetary Policy Statement and Press Conference, All Industries Activity

US – Philly Fed Manufacturing Index, Current Account, Unemployment Claims, CB Leading Index, Natural Gas Storage

 

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