Read the Daily Market Report from Dave Evans, BetOnMarkets Market Strategist.
Morning Report: Stand by for action
Morning Report: 07.45 London
• Forex markets are quiet, with the US dollar regaining a little of the significant ground lost yesterday. This is especially the case with the the Swiss franc, which is notable for its weakness this morning with the USD/CHF up by 0.78%.
• This should be the calm before the storm though as there is an extremely heavy economic data flow today.
Coming up today:
• Coming up today we have UK manufacturing production at 09.30, a slight drop in activity is expected.
• Following this at 12.00 we have the latest interest rate statement and quantitative easing levels announced from the UK’s Bank of England. No change is expected, but as ever, traders will be looking for hints at future monetary policy further down the line.
• At 12.45 then 13.30 we have the European rate announcement followed by the press conference with no change expected again, but Trichet’s words could still have an impact.
• Canadian and US trade balance is at 13.30 with a drop expected for both countries.
• At the same time there is US PPI and unemployment claims. No change is expected for the former, with a slight drop expected for the latter.
• Finally Fed chairman Ben Bernanke speaks at 18.00.
Bet Idea
• The EUR/GBP has been trading in a tight range this morning ahead of the big economic data, so tight in fact that you have to go back to 2007 to find a day that closed with such a tight range. The last three days have been unusually quiet for the pair, hinting at a breakout to come. We so much economic data due, its unlikely that the EUR/GBP will remain in its 27 pip range all day.
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