The US Dollar dropped sharply yesterday in response to much weaker than expected US economic data significantly reducing the likelihood of a Federal Reserve interest rate rise in September with now only a 50% chance of a rate hike by December. GBP/USD pushed north to a high of 1.3444 and continues to trade above 1.34 this morning on the interbank market. EUR/USD also traded high hitting a high of 1.1263, EUR/USD continues to trade near these highs this morning.
The Pound also had a strong day against the Euro with GBP/EUR hitting a high of 1.1997, although the rate has receded to 1.1920 this morning.
Today sees a number of economic data releases/speeches which could move the market (summarised below):
- 08:30 UK Halifax House Prices data
- 09:30 UK Manufacturing Production data
- 12:00 USA MBA Mortgage Applications data
- 14:15 Bank of England MPC members speech
- 14:50 Bank of England bond buying results
- 15:00 Bank of Canada Rate decision (rate anticipated to be held at 0.50%)
- 15:00 UK NIESR GDP Estimate data
- 19:00 Federal Reserve Beige Book