We have significant data being released in todays US session- Core Retail sales m/m, PPI m/m, Retail Sales m/m are all expected to print better than previous months numbers, coming in at 0.3%, 0.0% and 0.2% respectively. Better prints across the board will see the USD take back this weeks losses as US bulls look to end the week flat as we go into the FED rate week. Negative prints across the board would see the US bears continue to rally as fears of the FED not raising rates intensifies off of the data.
The BOE held rates and the Asset Purchase Facility steady and were tight lipped in their outlook for the future, not committing to either a hawkish or dovish tone. It appears that just like his counterparts in other major economies, Gov Carney has passed the buck to FED`s Yellen to make the next play in the ongoing currency wars
Light data out of the Euro-zone failed to add any value to either bulls or bears on what has been medium term factors affecting the single unit currency over recent days. Todays calendar is equally light, making technical factors more important, with only the German Final CPI m/m, expected at 0.1%, as the main feature.