Daily Market Report - 14/10/2014

Yesterday  Bank of England governor Mark Carney was  on CNN, suggesting the recent weakness in the eurozone might have an effect on the timing of UK interest rates, but indicated  it will not dictate policy. The Bank of England is expected to be the first of the major central banks to begin to raise interest rates after months of record lows, but these comments sound a little weaker than of late.

The dollar strengthened from a one-month low against the yen on speculation its longest losing streak since July was needless given US economic growth has the potential to outpace Japan’s. US Dollar rose for the third time in four days against the euro as analysts predict European data today will show industrial production will fall in August. The Federal Reserve officials did indicate a worldwide economic slowdown may delay U.S. interest-rate increases and weigh on the dollar. 

The European Central Bank’s record-low interest rates are pushing Japanese investors out of the region and into the U.S, and that’s weighing down the euro, according to Mizuho Bank Ltd. 

Indian bonds rallied, pushing the 10-year yield to a 13-month low, and the rupee gained after the government reported the slowest inflation in almost three years. Consumer prices rose 6.46 percent in September from a year earlier, the slowest pace since the index was created in January 2012 and compared with 7.73 percent in August, official data showed after the market shut yesterday.  

Brent crude oil  has dropped 21 percent since the end of June to $88.14 a barrel, reducing import costs for India, which relies on overseas purchases to meet about 80 percent of its oil requirements.

Key Announcements:

09.30 BST GBP:  UK Core consumer price index YOY expected to fall from 1.9% to 1.8%.
09.30 BST GBP : UK  Consumer price index YOY expected to fall from 1.5% to 1.4%.
10:00 BST EUR:  European industrial production YOY figures are expected to go from 2.2% to 0.9%.
10:00 BST EUR :  Economic sentiment figures from Germany expected to fall from 6.9 to 1.0

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