Once again, central bankers drive the market
|Today's Highlights
-
US rate cut a distinct possibility
-
Eurozone inflation picking up
Current Market Overview
US rate cut a distinct possibility
Two central bankers were in the news yesterday. The US Federal Reserve released its meeting minutes showing a clear propensity to lower their base rate amongst the members of the Open Market Committee. The US Dollar weakened a little on the news but is still down at $1.2540 against the Pound and $1.1270 against the Euro. We will have speeches from a number of FOMC members later today which ought to reinforce the message from the meeting.
The Bank of England publishes its financial stability report this morning. That sounds kind of euphemistic in the current environment where everything is anything but stable. It’ll make interesting reading though.
Eurozone inflation picking up
This morning brought a rise in French and German inflation. Fundamentally that is a positive for the Eurozone but it isn’t a local phenomenon. We are seeing rising inflation at the producer and consumer level in areas around the globe, so it is unlikely to prompt a rate hike from the European Central Bank any time soon. There will be comment from some members of the ECB through the day to keep us ‘informed’.
This afternoon will bring US inflation and initial jobless claims as well as the 2nd day of the Federal reserve Chairman’s testimony to the Joint Economic Committee, in Washington DC. He will say the same as he said yesterday.
Later this evening we will hear from yet another central banker; the Assistant governor of the Reserve Bank of Australia and then the purchasing manager’s index from New Zealand. That should keep the late traders busy.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.