Hello to you all on this reasonably quiet day on the markets (compared to last week anyway)
The most important releases for those with pending currency transactions are towards the end of the week, however as always with the current global situation all sorts of surprises may pop up in the meantime.
Today saw slightly better than expected data for Europe first thing, which has led to a little bit of rare Euro strength in morning trading, and the rest of the day of going to be reliant on sentiment and speculation as to where the rates will close up.
Overnight we have some house price data for the U.K, I highly doubt this will bring a shock upon opening my eyes in the morning and the rest of the day is a bit of a non event on the data fron too.
On Wednesday, the Federal Reserve Beige book will be the main talking point. The Federal Reserve is essentially the U.S version of our Bank of England monetary policty commitee, and the Beige book is a report of the economic situation in the U.S and may give indication as to how they plan to deal with matters going forward, any spanner thown into the works in this report could lead to a volatilie Dollar rate on Tuesday evening and Wednesday morning.
Thursday in my opinion has the capacity to be the most interesting day and potentially the most volatile, we have a host of Manufacturing and Production data out for the U.K at 09:30am closely followed by Europe releasing the same information at 10:00. At 12:00pm the Bank of England will announce their interest rate decision and although no change in rates is expected any mention of QE (Quantitative Easing) could lead to rapid Sterling weakness, I doubt we will here a mention of it but calls for further QE are increasing you it is still a danger. At 12:45pm The Euro Zone announce their rate decision too, there have been mentions of yet another rate cut for Europs bringing interest rates to record lows of below 1%.
A cut in rates generally weakens a currency as it makes it less attractive to investors, likewise a hike in rates usually leads to strength.
Friday is inflation day for the U.K and at 09:30am we see our Producer Price index out, I doubt this will have a huge effect on rates unless much different than predicted.
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