There was plenty of rhetoric in business news yesterday about the unexpected 50 points hike in the ECB's interest rate. However that was a bit sensationalist. Economists had been predicting and expecting the 0.5% hike for some time. What does that mean in FX market terms....very little happened.
Today could be a very different story however. There's the Eurozone inflation numbers out where analysts are expecting year on year growth of 8.5%. This expectation possibly drove the decision by the ECB to hike rates yesterday.
The US also has a raft of data out today, most of which could be benign. The highlight is possibly the Michigan consumer sentiment index out just after lunch where analysts are expecting a reading of 67. The theory behind the number is if the number rises month on month then consumer sentiment is gaining strength which should suggest higher spending which is good for the Dollar and the economy. Vice versa for a lower reading. This month is expected to be flat on last month.
Other than that it's a quiet weekend before Rightmove releases it's house price index just after midnight on Monday.
Business news surrounds the potential banking crisis which was staved off yesterday as 11 US big banks stepped in to support one of their smaller banks with a $30 billion boost keeping the drama within the banking arena rather than the public arena.
Today’s Economic Calendar
EUR: 10:00 Inflation Data
US: 14:00 Michigan Consumer Sentiment Index
UK: Monday 00:01 Rightmove House Price Index
As ever we look forward to keeping you in the loop and look out for our next update.
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