Yesterday’s Market Movers
- There was no data out in the UK Yesterday.
- In the EU we had the Trade Balance figure which came out considerably worse than previous, seeing some further Euro weakness as well as contributing to some USD strength through the risk aversion caused by the negative state of affairs in the EU.
- There was some negative data out in the US yesterday in the form of the NET TIC flows and NAHB housing market index, although instead of further risk aversion which was expected due to recent market movements, we actually saw a return to fundamentals as the USD weakened off towards the end of the day.
Today’s Market Movers
- In the UK today the main market movements are likely to come from the CPI figure expected to come in higher than previous. If this figure is positive then this shows inflation is increasing and we could see GBP strengthen as speculation regarding an interest rate hike could start to take place again.
- We could see further Euro weakness today as the ZEW economic sentiment surveys for Germany and the EU are both expected to come out negatively.
- The housing market is the focus in the US today although there is a definite possibility of data cancelling each other out as building permits are expected to come in worse MoM whereas housing starts are expected to increase slightly.