EUR movement may be affected by US interest rate indicators
February 12, 2018
Europe Market Movements
The euro has been falling against the USD, trading at 1.2282 this morning at 6:40 am GMT, down from 1.2453 a week ago. It’s been faring better against the GBP, trading at 0.8823, up from 0.8864 last week. It saw a dramatic fall on February 8, down to 0.8743 but it recovered after a few hours. With no major economic events today in Europe, the UK or the US, we might see consolidation rather than major volatility.
US Market Movements
Traders are eyeing the US consumer price index due for release on Wednesday. This will give an indication on the pace of inflation and by extension, the rate of anticipated interest rate increases by the Federal Reserve. It remains to be seen how the USD reacts to today’s monthly Budget Statement.
Asia/Oceania Market Movements
The Asian markets are quiet today with Japan closed for a national holiday but in Australia, the influential National Australia Bank’s Business Confidence Survey, released last week shows that if the current positive labor market conditions continue, the RBA may begin lifting interest rates. On traders’ radar, the speech today by the Assistant Governor of the RBA.
Gold prices have been rising today as the USD fell slightly, the price of gold is closely linked to the USD Index. Cryptocurrency volatility continues, with Bitcoin rising to $9000 yesterday, to fall back to $8357 this morning. For traders, volatility provides ample opportunities. In the Crude Oil front, WTI and Brent have both risen but the industry still has to face surging output in the US, which might be expected to affect prices.
|08:00 GMT||CHF: CPI m/m|
|19:00 GMT||USD: Monthly Budget Statement|
|21:50 GMT||AUD: RBA Assistant Governor Speech|