Market today in Thursday’s early session tracked the broader market sentiment and US Dollar dynamics, as the dust settled over the FOMC aftermath. The US dollar pulled back from post-FOMC highs across its main competitors, providing a sigh of relief to most majors.
USD/JPY pair witnessed good two-way businesses, initially having dipped to 111.35 lows before refreshing post-FOMC highs at 111.70. However, subdued Treasury yields and a pause in broad US Dollar buying dragged the pair back to 111.50 levels. Among the European currencies, EUR/USD traded close to the 1.12 handle while Pound is on the bids below the 1.3070 level ahead of the key event risk for today – the Bank of England’s Super Thursday.
The busy EUR calendar started today with the German retail sales data at 06:00 GMT. From 07:15 GMT, a flood of final manufacturing PMI reports started trickling in from the Euro area economies, with the key German and Eurozone PMI data dropping in at 07:55 GMT and 08:00GMT respectively.
From the UK docket, the UK construction sector activity report will be published at 08:30 GMT ahead of the much-awaited Bank of England’s Super Thursday. The BOE monetary policy decision will be announced at 11:00 GMT accompanied by its meeting minutes and quarterly inflation report. At 11:30 GMT, the BOE Chief Carney will be addressing the post-policy press conference, with all eyes on the economic projections considering the Brexit extension amid mixed fundamentals.
In the NA session, the weekly jobless claims from the US will be reported at 12:30 GMT alongside non-farm productivity and unit labour cost data. Meanwhile, the US factory orders data will be closely eyed at 14:00 GMT after the ISM manufacturing PMI disappointed a day before. Later in the American afternoon, the ECB Governing Council member and Buba Chief Jens Weidmann will speak at 17:30 GMT. At the same time, the speech by the ECB outgoing Chief Economist Peter Praet is also scheduled.
Both crude benchmarks traded on the back foot amid swelling US crude inventories while gold prices dropped towards $1,270 region.