Blueprint FX Desk
Blueprint Capital
Market Focus Today
EUR Consumer Price Index
EUR German Unemployment Rate
CAD Gross Domestic Product
Expect High Volatility in
USDCAD
EURUSD
Head of FX
‘Yesterday was another crazy day! All focus still on Greece, the strength of the U.S. economy (especially after yesterday’s GDP reading), and for the U.K obviously the general election. Good luck!’
News Roundup
Overnight
The Bank of Japan refrained from boosting monetary stimulus, even after inflation came to a halt, with Governor Kuroda betting it will re-emerge as oil prices begin to normalise. With inflation data coming being released tonight, it will be interesting to see if the market accepts or dismisses Kuroda’s comments of inflation beginning to return to economy at the end of 2015.
News Roundup
HIGH: U.S.
FOMC: The US economy has lost momentum, meaning that the Federal Reserve will possibly be unlikely to tighten monetary policy in the June meeting as previous hawks had hoped for. The central bank started the year in a bullish mood, with hiring and household spending strong, however growth in recent months has slowed, which has forced the FED to change its view, accepting the slowdown is partly down to the severe winter weather and drop in the oil prices affecting the big oil firms. With inflation expected to return to target in the medium term, and two more non-farm payrolls due before the June FOMC, an early rate hike can’t be ruled out entirely, but we remain data dependent.
MEDIUM: U.K.
Many feared the U.K. stock market would be rocked by the uncertainty regarding the election as a result of the ideological differences between the labour and conservative parties. However, analysts from UBS now believe that the bullish trend in cable and the equities market will not be put off by fear of British politics as cheap money continues to be pumped in. Thus many are starting to change their view, believing the unpredictable result will not bring about the market chaos as first anticipated – guess it’s a question of watch this space!
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