Sterling Sterling saw a steep sell-off yesterday after a string of disappointing data releases. UK Current Account and Total Business Investment fell short of estimates; leading to a rapid decline in the value of the pound. The weaker data opens the door to Mark Carney’s more dovish approach to monetary policy. Many have touched upon the fact that Carney has to convince eight other MPC members before he can instigate a broader approach to QE; however, this kind of weak data should help him state his case. Euro The Single Currency managed to rally, somewhat, against its counterparts yesterday; largely thanks to German data. An early report from Angela Merkel stated that the German government could continue to make cuts whilst stimulating economic growth. This, coupled with a better than expected change to unemployment, helped the euro higher. Today’s releases to watch are German Retail Sales and CPI data; these releases ought to have influence over euro-crosses. US Dollar Some better US data allowed the Greenback to continue its run yesterday. Personal Income and Pending Home Sales were some of the better releases that allowed the Greenback to continue its rout. Jerome Dudley’s speech yesterday clarified Ben Bernanke’s comments; although he did state that tapering would occur only should economic data support it. Today is relatively quiet; the only release of note being US Consumer Sentiment.
Posted on: Fri, 28 Jun 2013 08:31:01 +0000
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