The Bank of Japan kept it's interest rate at negative 0.1% earlier this morning. This was in line with expectations therefore has had no effect on the markets. Japan has the worlds third largest economy after the US and China so it's a closely watched number.
However, also out earlier was Spanish inflation data which actually came in below expectations. Analysts had predicted a whopping 9% year on year growth and it came in at 8.4%. Interestingly month on month was even further out with analysts predicting 3.3% growth but actually came in at 0.1% contraction. This may have contributed to the small bounce we saw this morning in the GBP/EUR rate.
However it looks much more likely that the sell off in the Pound has turned a technical corner and could start returning towards the upper end of the mid term range.
The same can be said of the GBP/USD rate as well which appears to have turned a corner on technical support this morning. The US preliminary GDP data out this afternoon could be what affects the rate today.
Other than that it's a quiet day in the UK for scheduled news. Eyes will be on the German inflation numbers later which could have a bearing on ECB interest rate decisions going forward.
As ever we look forward to keeping you in the loop and look out for our next update.
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Today’s Economic Calendar
GER: 13:00 Inflation Data
US: 13:30 Preliminary GDP Data
US: 13:30 Employment Data