US equities finished in the red as earnings disappointed markets, pulling them lower despite an increase in the commodities sector after crude oil gained more than 5% on the back of lower than expected Crude Oil Inventories (-3410k vs 750K). The DJIA shed 1.21%, the S&P 500 lost 0.95% and the NASDAQ-100 lost 0.93% on the day.

In FX the GBP was range bound between 1.4400 and 1.4500 after mixed data out of the UK which showed the Industrial Production released as expected at 0.3% and the Manufacturing production worse than expected at 0.1% vs 0.3%. The EUR was bid in late trade as ECB members struck hawkish to neutral tones throughout the day. The USDJPY shed roughly 100 pips before finding key support at the 108.20 level after BOJ Gov Kuroda said that the BOJ still has ammunition to loosen monetary policy further although inflation is within the right track currently.

The Asian Session saw equities in the region follow Wall Street`s lead, closing in the red, although the recovery in the commodity sector and weakening of the JPY softened the blow. The NIKKEI 225 lost 0.4%, the ASX 200 lost 0.4% and the Shanghai composite shed 0.3%.

Today`s key data will likely see an increase in volatility, especially for the GBP with much anticipated inflation report taking precedence in the London session and the US Unemployment claims taking precedence in the US session, while the NZD retail sales take the spot light in the Asian session.

GBP

  • BOE Inflation Report
  • MPC official Bank Rate Votes
  • Monetary Policy Summary
  • Official Bank Rate expected unchanged at 0.5%
  • Asset Purchase Facility expected unchanged at 375B
  • BOE Carney due to speak

CAD

  • NHP m/m expected at 0.3%

USA

  • Unemployment Claims expected at 277K
  • Import Prices expected at 0.6%
  • Mortgage Delinquencies previously at 4.77%
  • FOMC member Rosegren due to speak
  • FOMC member George due to speak

NZD

  • Retail Sales expected at -0.3%
  • Core Retail Sales expected at 1.1%