Yesterdays Market Movers
- There was no data out of the UK yesterday.
- In the Eurozone the only two pieces of data out was the European and German ZEW Survey. These both came out negatively but did not stem the flow of Euro strength much as speculation is still rife that they will raise interest rates.
- The FOMC had their interest rate decision yesterday which remained on hold at 25bp this had very little effect on the market.
Today’s Market Movers
- We start the morning with the release of the Avg. Earnings figure at 9.30am for the UK both including and excluding bonuses. These figures are expected marginally worse excluding bonuses and better including. This data will have little effect on the market unless the figures come substantially better or worse. If it is better it could curb the idea we won’t raise interest rates as this figure will go some way to raise consumer confidence.
- The next figure released for the UK is the unemployment figure which is expected to come out the same as previous, again any large movements and we will see movement in the market however if it stays flat it may just add a little extra momentum to the weakness we have seen against the Euro as it will add another reason why we shouldn’t raise our base rate.
- In the Euro the only key piece of data to be released will be the CPI figures these are expected to come in better across the board and will add more fuel for the need to raise the interest rates.
- The first piece of data out from the US will be the housing start which is expected to be slightly lower than last month’s figure. This figure measures how many new houses were constructed during the last month.
- The final piece of data out in the U.S is the PPI figure. This is expected to come out better across the board. It’s difficult to say what effect this will have although we may see some risk appetite and see the greenback weaken off a bit.