Euro bulls await German IFO Report
Sterling was stronger across the board as the central bank injected more uncertainty about the outlook for monetary policy. Just after the market sent the currency tumbling on the back of less hawkish MPC minutes from the latest monetary policy meeting, BoE’s Chief Economist Bean reminded everyone that the central bank cannot afford to relax about inflationary pressures.
GBP edged slightly higher against the Euro as data showed that UK business investment grew at its fastest pace in more than a decade in the fourth quarter. Today we are expecting the 2nd release of fourth quarter GDP, no changes are predicted which should leave the market’s focus on the German IFO report.
USD hit a one-week high against the Euro, gathering support from the minutes of the January policy meeting of the Federal Reserve, which showed the open market committee remained hawkish on inflation.
Yesterday in the US the jobless claims data was released, which dropped less than expected. This suggests that the labour market may not have been as healthy this month as it was back in January. There is no US data scheduled for release today but Fed Presidents Fisher and Yellen will both be speaking about the US economic outlook.
Eurozone data released yesterday indicated strength in exports but weakness in government and private consumption. French, Italian and Belgium business confidence were all stronger than expected, which suggests that we could see strength in today’s much awaited German IFO report.
The Belgium business outlook survey tends to have a strong correlation with the German IFO report. Having hit a record high back in December, even if we see a small pullback in German business confidence it may not be entirely bearish for the Euro.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
GBP edged slightly higher against the Euro as data showed that UK business investment grew at its fastest pace in more than a decade in the fourth quarter. Today we are expecting the 2nd release of fourth quarter GDP, no changes are predicted which should leave the market’s focus on the German IFO report.
USD hit a one-week high against the Euro, gathering support from the minutes of the January policy meeting of the Federal Reserve, which showed the open market committee remained hawkish on inflation.
Yesterday in the US the jobless claims data was released, which dropped less than expected. This suggests that the labour market may not have been as healthy this month as it was back in January. There is no US data scheduled for release today but Fed Presidents Fisher and Yellen will both be speaking about the US economic outlook.
Eurozone data released yesterday indicated strength in exports but weakness in government and private consumption. French, Italian and Belgium business confidence were all stronger than expected, which suggests that we could see strength in today’s much awaited German IFO report.
The Belgium business outlook survey tends to have a strong correlation with the German IFO report. Having hit a record high back in December, even if we see a small pullback in German business confidence it may not be entirely bearish for the Euro.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
posted by Drs Search @ 2:21 PM
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