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FOREX: Pound Vulnerable as Traders Eye Bank of England Minutes
Written by article default Wednesday, 20 July 2011 09:26
Talking Points
- British Pound Vulnerable Ahead of BOE Minutes Release
- Currencies Trade Defensively Despite Asian Stock Rally
- NZ Dollar Slumps on Profit-Taking, Japanese Yen Gains
All eyes are on the Bank of England as it publishes minutes from the monetary policy meeting held earlier this month. The aggressive deterioration in UK economic data in June may have planted the seeds of a dovish shift on the rate-setting MPC committee, and any indication of growing support for another round of quantitative easing (QE) is likely to weigh heavily on British Pound.
FX markets ignored a catch-up rally on Asian stock exchanges, settling into cautious consolidation after sentiment-linked currencies surged with the broad improvement in risk appetite on Wall Street. Shares rallied in New York trade after President Barack Obama endorsed a bipartisan plan to cut the US deficit by $3.7 trillion over the next decade, fueling hopes the world’s top economy may be muddling through the recent upswing in sovereign risk.
The New Zealand Dollar underperformed on profit-taking having scored outsized gains over the preceding 24 hours, sliding as much as 0.3 percent against its leading counterparts. The Japanese Yen led the way higher in the safe-haven camp. The defensive tone was compounded after the International Monetary Fund said the Greek debt crisis may spill over into other Euro Zone countries even if the country does not default, spooking investors.
Asia Session: What Happened
|
GMT |
CCY |
EVENT |
ACT |
EXP |
PREV |
|
0:30 |
AUD |
Westpac Leading Index (MoM) (MAY) |
-0.1% |
- |
0.1% |
|
1:00 |
AUD |
DEWR Internet Skilled Vacancies (JUL) |
0.0% |
- |
0.3% |
|
2:00 |
CNY |
Conference Board Leading Index (MAY) |
155.0 |
- |
154.3 |
|
5:00 |
JPY |
Coincident Index (MAY F) |
106.3 |
- |
106.0 |
|
5:00 |
JPY |
Leading Index (MAY F) |
99.6 |
- |
99.8 |
Euro Session: What to Expect
|
GMT |
CCY |
EXP |
PREV |
IMPACT |
|
|
6:00 |
EUR |
German Producer Prices (MoM) (JUN) |
0.0% |
0.0% |
Low |
|
6:00 |
EUR |
German Producer Prices (YoY) (JUN) |
5.5% |
6.1% |
Medium |
|
7:00 |
JPY |
Convenience Store Sales (YoY) (JUN) |
- |
5.7% |
Low |
|
8:00 |
EUR |
Italian Industrial Orders s.a. (MoM) (MAY) |
2.3% |
-6.4% |
Low |
|
8:00 |
EUR |
Italian Industrial Orders n.s.a. (YoY) (MAY) |
10.2% |
5.8% |
Low |
|
8:00 |
EUR |
Italian Industrial Sales s.a. (MoM) (MAY) |
- |
1.5% |
Low |
|
8:00 |
EUR |
Italian Industrial Sales n.s.a. (YoY) (MAY) |
- |
14.2% |
Low |
|
8:30 |
GBP |
Bank of England Minutes |
- |
- |
High |
|
9:00 |
EUR |
Italian Current Account (euros) (MAY) |
- |
-5604M |
Low |
|
14:00 |
EUR |
Euro-Zone Consumer Confidence (JUL A) |
-10.2 |
-9.8 |
Medium |
Critical Levels
|
CCY |
SUPPORT |
RESISTANCE |
|
EURUSD |
1.4077 |
1.4295 |
|
GBPUSD |
1.6050 |
1.6187 |
Open Positions
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