Mike Paterson’s daily Forex brief
We’ve seen a little bit of $ buying on the back of anticipated monetary easing today this side of the pond but markets are still on hold ahead of the interest rate decisions from the BOE and ECB.
The Old Lady is expected to keep rates on hold again but add another Â£50 billion to the QE, while traders have factored in a 0.25% rate cut from the ECB to 0.75%.
EURUSD is a little lower at 1.2522 having tested 1.2500 and GBPUSD is down at 1.5580 with EURGBP trading sideways still at 0.8040 (GBPEUR 1.2438).
Overall the Pound is little changed but lower versus the strengthening Aussie after the RBA left interest rates on hold the other night.
Yesterday’s eagerly expected testimony from former Barclays CEO Bob Diamond turned out to be a damp squib versus expectations but still opened the door a little on potential bombshells, and this definitely has more legs. It remains to be seen though whether MP’s rather than trained inquisitors are capable of extracting the full story.
Andy Murray marches onto the Wimbledon semis and today the International Football Association Board (no, I’ve never heard of ‘em either) vote on whether we will finally see the introduction of goal-line technology.
Let’s hope it’s not the only highlight of the day……..
Interbank Rates 08:50 BST
Today’s Data: BST
11.00-EU – German Factory Orders
12.00-UK – BOE Interest Rate Decision
12.45-EU – ECB Interest Rate Decision
13.30-EU – ECB Press Conference
13.30-US – Weekly Jobless Claims
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