Sterling Sterling continued its recent run of form; making gains against both the euro and US dollar. Interest Rates and Asset Purchases remained constant as Mervyn King continues to be bullish on the prospects of the UK economy. Today we have Consumer Inflation Expectations, Total Trade Balance, Goods Trade Balance and Non-EU Trade Balance from the UK; all due out this morning, and could influence rates. Euro Mario Draghi surprised markets yesterday by foregoing talking in detail of negative deposit rates and the recent poor performance of its top performing nations. He instead chose to talk up the euro, revising the GDP figures upward, making a tenuous case for the euro-bulls whilst keeping Interest Rates on hold. Today there are a number of European releases, the most significant being: German Trade Balance and Industrial Production. US Dollar Yesterday the dollar suffered again, largely thanks to the euro’s run, as the US jobless figures showed little surprises. The swings in EUR/USD, therefore, could be perceived as a change in risk-sentiment. Today is a significant day for the dollar; Non-Farm Payrolls and Unemployment figures are the two largest international releases of the day and have the power to influence a number of asset classes.
Posted on: Fri, 07 Jun 2013 08:08:20 +0000
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