While the focus of the wider market will undoubtedly remain largely on Italy and the ongoing volatility in the bond and stock markets, some forex traders’ focus will momentarily turn away from politics and back to economic fundamentals today. That’s because we have key data coming from the United States later on today while the Bank of Canada is also scheduled to make a rate announcement.
Chinese data shrugged off as equity markets edge slightly lower; sterling under pressure as pressure on May mounts; central banks event sees Fed, ECB, BoJ and BoE heads join panel discussion; German GDP and inflation data get us off to an underwhelming start.
Equities across the Asian markets were trading in a tight, narrow range on Thursday, ignoring solid Chinese data and the new records on the financial market, where the Dow Jones Industrial Average breached 23,000. FX markets are also struggling for direction, as traders look for signals from EU politics, and signs for who will lead the Federal Reserve.
The pound came under pressure following this morning’s publication of key UK economic data, although the losses were limited as Mark Carney, the Bank of England Governor, reiterated that an interest rate rise was on the horizon.