The GBPUSD gave back around 50 % of its post ECB gains as BOE Gov Carney failed to give any confidence to the GBP bulls in his speech yesterday. Today's Manufacturing Production figures, expected at -0.1%, should have a strong impact on the GBP, a stronger than expect number would see the GBP strengthen across the board. However a more subdued number would have GBP bears looking to drive price lower. the NIESR GDP Estimate is also due today, a print above last months 0.6% , would be welcomed by GBP bulls as they look to recapture past highs.
The dollar gained slightly on Monday and through Asian trade, as traders position themselves for next weeks expected rate hike by the FED. Today's calendar is light, with NFIB Small Business Index expected at 96.6 and the JOLTS Job Opening expected at 5.59 m. a upside surprise on either will see dollar bulls maintain their smile.
The JPY strengthened over Asian trade as BOJ Gov Kuroda failed to play into the hands of those on the dovish bench and down played any further easing. it appears that Kuroda is following ECB`s Mario Draghi and putting the ball in FED chairman Yellens court as the currency wars unfold.
The EUR crosses are still holding onto post ECB gains with a relatively uneventful Eurogroup not causing any real reason for the currency to move. The data front for the EUR is on the light side today with the Revised GDP q/q expected at 0.3% ad the ECOFIN meeting forming the main highlights. Any positive release on either would see the EUR gain some strength but a subdued reaction is expected at markets range in anticipation of more significant news.
Crude dropped almost 2% on Monday as OPEC members refuse to give up market share and maintain a high supply side in the face of ever dwindling demand as the worlds economies continue to slow down. Pundits are calling the price will fall lower as the market is flooded with crude oil and holding fees steepen.