GBP relishes May`s 12 step plan

Yesterday saw PM May take the stand as she proceeded to outline the much anticipated stance the UK is to take going into the negotiation of Brexit. May struck a reassuring tone which markets relished as we quickly saw the confident speech lead to a big gain in the GBP as it posted gains of over 350 pips against the greenback and gaining over 175 pips against the EUR. Markets will remain sensitive to news out of the UK with investors buying the GBP on good news for the UK and likewise selling the GBP on more pessimistic news.

 

09:30 UK Claimant Count Change GBPUSD

 

US inflation data to turn the tide for USD bulls?

The US dollar has been punished of late as we see it underperform against a basket of its peers as markets begin to lose faith in the US economy. Today’s CPI m/m and Core CPI m/m data, expected at 0.3% and 0.2% respectively, along with Fed Chairman Yellen`s speech will either confirm the US`s supremacy if they beat expectations, leading to fresh buying coming through as bulls look to move the US index away from its 100 level or if the data comes in worse than expected, we will see the current mood confirmed which will send the US dollar lower as bulls bail and bears gear up for a longer ride down.

 

13:30 US CPI m/m EURUSD

 

Will Bank of Canada change interest rates?

Today sees the Bank of Canada (BOC) step up to the plate as it is set to release the Overnight Rate, BOC Rate Statement and its Monetary Policy Report. With the Overnight rate largely expected to remain unchanged at 0.5%, the most likely scenario at this stage of the financial crisis is that the BOC will look to signal its future intensions through the use of the Monetary Policy and Rate statement, which they will use as a tool to signal optimism or pessimism in the current and future outlook of the Canadian economy. A pessimistic tone will see the Cad weaken while an optimistic tone will see the CAD strengthen.

 

15:00 CAD BOC Rate Decision USDCAD