All eyes on the ECB

Yesterday morning UK Construction PMI figures were announced and failed to live up to expectations of 58.2 and posting actual figure of 55.3 which caused the pound to weaken.

This was followed by the European Monetary Union Consumer Price Index, which released a figure of 0.9% which came in 0.1% below forecasted expectations, possibly showing signs to support further quantitative easing or indeed a interest rate cut by the ECB which should be announced later today at lunchtime. At 3pm yesterday the Bank of Canada announced the latest interest rate decision which remained at 0.5% in line with expectations.

Positive US ADP employment change data for November has strengthen the Dollar, and potentially enhance chances of the anticipated interest rate hike on the 16th of this month. A feeble pound and burly dollar means GBP/USD currency pairing was the biggest loser yesterday which saw the rate drop by 1% which is the worst buying rates we have seen since April this year, and is likely to continue over the coming weeks.

Today key releases:

Key data releases today on the FX Market kicks off at 9am with EUR Markit services PMI is being released which is predicted to remain at 54.6. This is followed by the ECB’s Interest rate decision and statement the at 12:45. It is fully expected that further QE and a rate cut will be announced, however the market has by now priced in this expectation and it is unlikely that rates will push up higher. However, if results go the other way we could see the rates drop depending on the markets view of the statement. For the later part this afternoon, USD Markit services PMI is due, followed by a speech from Janet Yellen at 3pm.

It is likely to be a busy day today so as always if you have any upcoming transfers, do keep in touch with your account manager today here at Currency Index to stay ahead of the markets with expert advice.