- The US dollar continued to claw back some ground on the euro and the pound yesterday with EUR/USD falling by 0.93% and GBP/USD falling by 0.48% on Wednesday.
- EUR/USD opened and closed at 1.2377 and 1.2262, respectively and GBP/USD opened at 1.3944 and closed at 1.3877.
- The euro lost value against the pound for the first time in five days. GBP/EUR closed up 0.46% after opening at 1.1265 and closing at 1.1317.
- The Eurozone’s GDP growth estimate for 2017 of 2.4% is above November’s Autumn Economic Forecast projections of 2.2% for the euro area and 2.3% for the EU.
- New York Fed President Dudley said the recent stock market drop has not changed his economic outlook however a sustained drop would force him to reassess.
- Canadian building permits m/m came in much better than expected at 4.8% vs 2.1%.
- RBNZ kept rates unchanged at 1.75% last night. At the press conference the RBNZ governor Grant Spencer said that bank is not concerned about the rising value of the New Zealand dollar add that the NZD strength was largely on the bank of the weakness in the US dollar.
- Chinese trade balance came in at 136B when 328B was expected.
- From Australia, the NZB quarterly business confidence figure came in at 6 whereas it came in at 8 the last time around.
- At midday the Bank of England will release their inflation report alongside the official bank rate, monetary policy summary and the MPC rate votes. The rate is expected to be kept at 0.5% and all nine votes are expected to be in favour of this.
- This afternoon we expected NHPI m/m from Canada to come in at 0.1% and unemployment claims from the US to come in at 232K.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|12:00||GBP||BOE inflation report|
|12:00||GBP||MPC official bank rate votes||0-0-9||0-0-9|
|12:00||GBP||Monetary Policy Summary|
|12:00||GBP||Official Bank Rate||0.50%||0.50%|