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.
Once the FOMC meeting and press conference are both out of the way, the near-term direction for the dollar should become clearer. For those who prefer to focus on something else, crude oil or a non-dollar FX pair would be a good place to start.
Sterling held above 1.32 against the dollar early Thursday as traders eagerly await the Bank of England's policy meeting today. Bond yields declined from July highs but remained elevated, as some market participants believe that the BoE may surprise, with a 25-basis point rate hike.