Yesterday’s Market Movers
- From the UK yesterday CPI figures were down at 4.0% from 4.4%, this was an unexpected change, we saw Sterling drop on the back of this information. Also we had the RPI figure which also dropped YoY. From this information it has indicated that the BOE will probably not be raising interest rates in the near future and analysts indicate a rate hike in October rather than August. Lastly from the UK we had the trade deficit and the BRC retail sales which also fell from previous figures.
- From Europe we had the German ZEW economic sentiment figure and the EU economic sentiment which dropped much more than expected, the Euro shrugged off the poor data and continued to trade strong against Sterling and the US Dollar.
- From the US in the afternoon we had the trade balance deficit and import price index, both figures released were better than previous figures and we saw the US Dollar go back into fundamentals. From this information we saw the US Dollar pullback against the Euro finishing at 1.44 from 1.45 levels
- We saw EUR-USD trading at 1.45 levels late yesterday afternoon due to China buying some of Spains sovereign debt, this had made Euro stay strong against it’s counter parts.
Today’s Market Movers
- Early in the morning from the UK we will have the Claimant count rate which is expected in-line, as well as this we have the ILO unemployment rate which is also expected the same as previous figures. If the unemployment rate falls we could see Sterling edge slightly high from this information.
- From the Euro zone we have the industrial production figure this figure is expected higher than previous so we could see the Euro strengthen from the back of this information.
- In the afternoon from the US we have the retail sales ex autos (MoM) and retail sales (MoM) both figures are expected slightly worse than previous so we could see Dollar weakness from the back of this information.