As it has been for the last couple of weeks, things were quiet in terms of data for the UK yesterday although it’s a different case today as we’ll see an inflation report from the Treasury Committee and inflation numbers then shortly afterwards. It’s expected that the rate will remain the same, although we did see things take a dip into negative territory in October. If we see things edge towards a flat 0% then it should have a positive effect on the pound. Of course, it’s the 2% that the BoE are after – so all eyes will be peeled to find out what the story is. This morning has already shown some positivity for the pound which was hit a 3-month high against the euro at 1.4250 Interbank.
In the wake of Paris’ Friday night horror, EUR took a bit of a knock – GBP/EUR hit 1.4220 Interbank while USD/EUR hit a six-month low at 1.0770 Interbank. In terms of data, things were looking a bit better as CPI came in better than expected for both yearly and monthly levels. While inflation has seemed to bottom out, it’s not dropping any further which may be a sign that the European Central Bank’s QE measures are working. This obviously all sits within the broader context of a sluggish global economy, though. If going by a speech given by Mario Draghi last night, then it could be the case that Europe’s QE has also been good for the UK and US versus the single currency.
Data out today for Europe includes Germany’s ZEW sentiment survey – a good indicator of investor sentiment about the health of the economy. Despite some weaker data out for manufacturing, as seen from New York yesterday, the dollar still managed to make some gains. The NY Fed did, though, post improved business conditions from -11.4 to -10.7. Investors also seem to move towards the dollar after the Paris massacres, but punters are also hopeful of a Fed rate rise before the year is up.
In terms of data today, we’ll see CPI inflation numbers around lunchtime; month-on-month this is expected to come in as positive. There will also be further industrial and manufacturing figures, along with mortgage delinquencies.
FC Exchange is a trading name of Foreign Currency Exchange Limited. Registered office: Salisbury House, Finsbury Circus, London, EC2M 5QQ. Registered No.5452483. Authorised by the Financial Conduct Authority (No.511266) under the Payment Service Regulations 2009 for the provision of payment services. HM Revenue & Customs MLR No.12215508. Copyright © 2013 Foreign Currency Exchange. All Rights Reserved.
Recommended Content
Editors’ Picks
AUD/USD recovers further toward 0.6800 on risk-recovery
AUD/USD extends recovery toward 0.6800 in Asian trading on Thursday, despite mixed Australian employment data. The Aussie cheers a return of risk appetite, which weighs on the post-Fed US Dollar recovery. All eyes now remain on US economic data for fresh impetus.
USD.JPY reverses sharply from 144.00, as US Dollar recovery fizzles
USD/JPY is attacking 143.00 in Thursday's Asian session, reversing sharply from 144.00. The pair pares back gains in tandem with the US Dollar, as the latter's post-Fed recovery falters due to a rebound in risk sentiment. The focus is next on the US data due later today and Friday's BoJ decision.
Gold price regains positive traction amid a modest USD pullback from one-week high
Gold price attracts some dip-buying during the Asian session on Thursday and seems to have stalled its retracement slide from the $2,600 mark, or a fresh all-time peak touched the previous day. The US dollar trims a part of its intraday gains to a one-week high, which turns out to be a key factor lending support to the commodity.
Crypto leaders and Congress blast SEC over crypto regulations
In a meeting on Wednesday, several crypto leaders and congress members debunked the Securities and Exchange Commission's harsh regulatory approach toward the crypto industry.
Australian Unemployment Rate expected to hold steady at 4.2% in August
The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.