Today sees the heads of the Bank of England and the European Central Bank take the podium as they look to shed some much needed light on the state of their respective economies. With the Brexit vote still causing waves in markets , most notably the GBP and UK stocks, Mark Carney will address the House of Lords Economic Affairs Committee on the current and expected economic effects of Brexit. Should he strike a hawkish tone, where he downplays the negative impact of the event, we would see the GBP stabilise and head north as markets lift the currency off its 1985 lows while a more dovish tone, in which he warns of dire consequences stemming from the event, likely to see the GBP continue its decent deeper into 1980`s prices.

The ECB`s Mario Draghi will address the German Institute for Economic Research and discuss stability, equity and monetary policy in the current climate. Should he strike a hawkish tone in which he sees the EU recovering sooner rather than later, we would see the EUR bounce from its recent lows as markets price in a more than expected resilient EU economy. However, should he strike a dovish tone, in which he opens the door for more actions from the central bank, we would see the EUR bears proved right as we see he EUR sell off further.

Today's key economic data is as follows:

EUR

  • German Ifo Business Climate expected at 109.6
  • ECB President Draghi Speaks

GBP

  • BOE Gov Carney Speaks

USD

  • CB Consumer Confidence expected at 101.5

AUD

  • CPI q/q expected at 0.5%
  • Trimmed Mean CPI q/q expected at 0.4%