Previous Day's Market Highlights
The ECB provided no major surprises to markets yesterday, making no changes to the QE program and overall was seen as a hawkish meeting. However, President Draghi was positive on the economy and made no attempts to ‘talk down’ the euro, maintaining the line that the ECB doesn’t “target exchange rates”. As a result, EUR/USD traded at November 2014 highs.
Meanwhile, the US dollar has had an interesting 24 hours. US Treasury Secretary Mnuchin’s comments from Wednesday “favours a weak dollar” continued to act as a headwind to the dollar in early trading yesterday. However, overnight comments from President Trump, that he wanted to see a “strong dollar”, have seen the currency regain some strength.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
The day begins with the release of UK GDP for the fourth quarter of 2017. This is forecast to show quarter on quarter growth of 0.4%, with an annualised figure of 1.5%. Sterlingtraders will be looking for a strong data release to continue the pound’s rally.
The remainder of the morning is quiet in terms of data, however the afternoon session is busier. This begins with the release of Canadian CPI at 1:30PM, forecast at -.3% month on month. Also released at the same time is the US 4th quarter GDP figure, expected to be 3.0%. USD traders will be hoping this helps to stop the heavy selling of the US dollar that we have recently seen.
The day is completed with a panel discussion at the World Economic Forum in Davos, with highlights including speeches from BoE Governor Carney and BoJ Governor Kuroda.
Today's Economic Calendar
|09:30||GBP||Prelim GDP q/q||0.4%||0.4%|
|09:30||GBP||Index of Services 3m/3m||0.4%||0.3%|
|03:30||USD||Advance GDP q/q||3.0%||3.2%|
|13:30||USD||Core Durable Goods Orders (MoM)||0.5%||-0.1%|
|14:00||GBP||BOE Gov Carney Speaks|
|14:00||USD||BOJ Gov Kuroda Speaks|