The Bank of England Puts the Pound in the Spotlight

Earlier in the Day:

It is a particularly quiet start to the week on the economic calendar this morning. There were no material stats to provide the majors with direction early in the day.

For the Majors

At the time of writing, the Japanese Yen was flat at ¥110.96 against the U.S Dollar. The Aussie Dollar was flat at $0.7575, while the Kiwi Dollar was down by 0.01% to $0.7046.

The Day Ahead

For the EUR

It’s a relatively busy day ahead on the economic data front. German business sentiment figures for June are due out along with the ECB’s Economic Bulletin.

While the headline ifo Business Climate Index will draw interest, the ECB’s Economic Bulletin will likely be the key driver.

Early in the week, ECB President Lagarde had spoken of a speedier economic recovery, fueled by consumer spending. The ECB’s Economic Bulletin will need to deliver a similar outlook to support the EUR.

At the time of writing, the EUR was up by 0.03% to $1.1930.

For the Pound

It’s a quiet day ahead on the economic calendar.  There are no material stats due out of the UK to provide the Pound with direction.

While there are no stats in focus, the Bank of England is in action later today. Hawkish chatter would support a Pound return to $1.42 levels…

At the time of writing, the Pound was up by 0.01% to $1.3965.

Across the Pond

Core durable goods and weekly jobless claims figures will be the key stats from the U.S later today.

A marked fall in jobless claims would support another Dollar rally.

Other stats include durable goods, inventories, trade, and finalized 1st quarter GDP numbers.

We don’t expect these numbers to influence, however.

On Wednesday, the Dollar Spot Index rose by 0.05% to end the day at 91.802.

For the Loonie

It’s a particularly quiet day ahead on the economic data front. There are no material stats due out of Canada to provide the Loonie with direction.

The lack of stats will leave the Loonie in the hands of market risk sentiment on the day.

At the time of writing, the Loonie was up by 0.02% to C$1.2304 against the U.S Dollar.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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