Stressful times for RBS

Today, we stand to see a volatile day across the wise money markets.

Today, we stand to see a volatile day across the wise money markets.

With the results from the UK Bank Stress Tests revealing that RBS failed all of the Bank of Englandís measures as they have come out as the worst performer amongst major UK lenders. The talk is that RBS will now have to embark upon drawing up a new capital plan and further progress made will be monitored by their regulators.

Further to this, other major banks/lenders have come out on top stating theyíve no issues to address. This includes the likes of Lloyds, HSBC, Barclays and Santander.

OPEC Meeting today

Furthermore, throughout the day we have OPEC meetings who represent 40% of the worldís oil supply. With any surprises following this, we could see some potential movement across markets. So far, Iraq has agreed to cut production meanwhile, Saudi have announced that for Iran, a pre-sanction freeze will be acceptable which could have a kickback on the import/export market.

Draghi due to speak today

Regarding the remainder of the day, weíre due to see Mario Draghi ñ Head of the European Central Bank ñ speak at 12:30 in relation to “the future of Europe” in Madrid. This will be followed by an early outlook to the US Non-Farm Payroll figures at 1:15PM with the official release lined up for Friday. We also have monthly GDP data from Canada at 1:30PM and the crude oil inventories for the US at 3:30PM.

Overall, we should expect a volatile day across major currency pairs with the possibility of a mid-week turning point.

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