- The euro strengthened against both the US dollar and sterling yesterday with GBP/EUR closing at 1.1788 after opening at 1.1834 and EUR/USD closing at 1.0557 after opening at 1.0529.
- German Ifo Business Climate came in slightly better than expected at 111.0 vs 1.09.60.
- Following that we saw the second estimate of GDP q/q from the UK come in better than expected at 0.7% vs 0.6% expected.
- Canadian Core retail sales m/m came in slighty worse than expected at -0.3% vs 0.8% and US existing home sales beat expectations at 5.69M vs 5.55M.
- The FOMC meeting minutes were released last night in which Federal Reserve officals expressed confidence than they can raise interest rates gradually, while a hike ‘fairly soon’ might be appropriate to avoid the risk of an overheated economy. (Bloomberg)
- Private Capital Expenditure q/q from Australia came in worse-than-expected at -2.1% vs -0.4%.
- Sterling is up over 10% against all of the other major currencies this morning.
- We are expecting US unemployment claims data at 1.30pm to be followed by FOMC Member Kaplan speaking publicly at 6pm.
- Gov Lowe of the RBA will also be speaking publicly at 10.30pm.