Sterling Despite strong CPI Numbers, and Inflation figures that belie the notion that more QE from the BoE could be a stable economic option, sterling took heavy losses against the euro and dollar yesterday. Mixed results from USD may also have been negated by events to come in the upcoming New York trading session. Today could yield more volatility as we have the BoE minutes and a statement from Governor Mervyn King. Speculators will look to the minutes for clues as to what the BoE’s next moves could be. Euro Better than forecast Economic Sentiment numbers from Germany, and the European Economic Area as a whole, lifted the Single Currency against its counterparts yesterday. Gains were capped; however, as a statement from Mario Draghi hinted that more unconventional measures could be taken to pull the Euro-Area out from its current mire. Today’s most significant releases are Construction Output from the European Economic Area and a German 10-Year Bond Auction. US Dollar Today could yield a significant amount of volatility for the dollar as Ben Bernanke takes the stage today as well as releasing the US Interest Rate decision and Economic Projections. Traders’ minds will be focussed on the potential for tapering; as such, talks of recovery should yield dollar strength yet any mention of slower growth will see dollar weakness as it would be perceived as a signal that QE will continue.
Posted on: Wed, 19 Jun 2013 08:23:04 +0000
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