US durable goods are today's highlight

Today's Highlights

Sterling edged higher on retail sector optimism 

US durable goods are today's highlight 

Dollar traders prepare for Federal Reserve

FX Market Overview

David Cameron had a busy day; delivering speeches, dodging potential security threats and telling parliament that he won't pay the EU's surcharge on success. You have to think that most of the EU ignores the rules from time to time so there are plenty of precedents for doing so. He may need to stick to his decision if he is to avert a surge in UKIP support....oops, that may be too late.

By way of contrast, the Pound had a bit of a feet-up day. However, the CBI distributive trades survey (a retail sector snapshot) showed a positive balance of 33% of retailers saw growth. That contrasted with a forecast of 25% and was higher than the previous 31% reading. If high streets are busy, the Treasury will be happy and, as long as inflation remains in check just like the Bank of England's Deputy Governor says it is, then there are reasons to be cheerful. In isolation, that data wasn't enough to boost the Pound but Sterling does have a positive lean and is edging higher against most other currencies. To use the common parlance, there ain't nuffink coming out of the UK today so Sterling is unlikely to set the world alight.

In fact the data diary is pretty sparse in most economies today. We do get US durable goods orders and a consumer sentiment index in early afternoon trade (UK time). The forecasts for both sets of data are very positive so there is definitely scope for the US dollar to strengthen in later trade...assuming of course that this data meets expectations. That strength may be muted ahead of tomorrow's US Federal Reserve interest rate setting meeting. The Fred ought to complete their exit from the bond buying program which they have downscaled each of the last few months. They could cause a kerfuffle if they didn't complete that plan but they most probably won't. Traders will though be looking for any hint of the size and timing of the first interest rate hike; that is the real focus. 

Sorry it is a short report this morning but there really isn't a lot to comment on. I am sure Wednesday's busier calendar will give us more to look at for tomorrow morning but that is your lot for now.   

I will leave you with this story though. Police in Coventry were involved in a raid on a suspected safe house for illegal immigrants. They approached in an unmarked van, parked it up and went to execute the raid only to turn around and spot a thief stealing the number plates from their van. 'Wrong place and wrong time', is the expression that springs to mind. They gave chase and caught the thief who was charged with theft and 'going equipped'.