Yesterday's Market Movers
- The only piece of data from the UK on Tuesday came in the form of Public sector net borrowing, which came in at £15.156bn higher than the month prior yet lower against market expectations. This saw the government run up a record budget deficit in the first two months of the fiscal year despite a slightly larger than expected drop in borrowing in May, official data showed on Tuesday, highlighting the tough road ahead for the government as it tries to slash public borrowing.
- Also adding to sterling woes yesterday were comments made by MPC policy maker Paul Fisher regarding further QE. Sterling fell both against the euro and greenback following these comments that kept alive the chances of further QE in the UK. Fisher also added that if the BoE saw midterm inflation turning into deflation, they may consider looking at monetary policy.
- The euro zone on Tuesday saw the ZEW survey released with all data to the down side. This added to notion that with the recent possible second adding of Greece in terms of a bailout or even worse default many investors are turning slightly negative towards the euro zone in the short term.
- The only piece of data from United States was in the form of existing home sales, where we saw a positive set of MoM figures against last month. However these figures didn’t really impact the greenback at all though a good set of figures went a long to assure the economy that sales did recover ever so slightly against market expectations.
Today's Market Movers
- The main data out from the UK today is in the form of the BoE minutes where investors will get an insight into the Bank’s voting and thoughts at last month meeting. The meetings are always released two weeks after rate decision and any negative comments would see sterling trade lower against the US dollar and euro.
- There are two pieces of data from the euro zone today, industrial new orders and consumer confidence. Industrial new orders are looking for a slight mixed set with the MoM looking for a higher number whilst the YoY are seeing a slightly lower figure. Consumer confidence on the other hand is looking to come in lower which will go a long way to show that many people in the euro zone aren’t as confident given recent problems with Greece at the and possible contagion spreading across Europe.
- The biggest piece of data from the United States today is in the form of the FOMC interest rates decision where an unchanged figure is expected. Given all the problems seen in the US regarding debt, a falling jobs market and their credit rating being put under review over the last few weeks it’ll be interesting to see their comments on matter towards the US economy and US dollar.