GBP: We will be looking at the Manufacturing PMI out from the UK by 10.30am, a positive outcome is expected because we have been seeing a steady increase in the PMI numbers since Brexit.
USD: We will be looking at the ADP employment numbers today, we expect a better than expected outcome as the effects of the festivities is yet to have dissipated especially for the private sector, as this data reveals employment numbers in the Private Sector. We will also be looking at the ISM Manufacturing Data, the outcome is expected to be slightly better than the December numbers but I expect the actual data to beat the forecasted number by a wide margin especially from spill over effects of the Festive season.
USOIL/WTI : The Crude Oil Inventory numbers is expected to come out today, if the recent data releases is anything to go by, we expect today’s figures to come out higher meaning an increase in inventory, this should cause WTI to fall further today.
FOMC: This is the News of News, the FEDZ will be deciding the outcome of the interest rates today, no change is expected however we would be looking for clues as to their Opinion of President Trumps Policies and its possible effect on their future policy plans.
BOJ: The Bank Of Japan held Interest rates steady as expected. Nevertheless there was a switch from a complete dovish stance to a neutral stance as they talked about increasing growth in the Japanese economy as well increasing Global growth which should help exports further. The Weak Yen should also help stoke inflation in the future helping them meet their inflation target in the long run.
EUR: The Single Bloc CPI came out better at 1.8% as against the forecasted figure of 1.5%, we had seen the German CPI y/y pick up as well as France and Spain, this spilled over into the Single Bloc Inflation figures, nevertheless in the Latest ECB meeting, President Draghi had laid emphasis on the Core CPI as his gauge for true inflation growth, the Core CPI has been flat for the last 10 months moving within the range of 0.8% - 0.9%, therefore in light of this data we don’t expect any policy adjustment. The Single Bloc also expanded in Q4 at 0.5% better than forecast of 0.4%, we have been seeing moderate growth now in the EURO-AREA and this growth is expected to continue.
CAD: The Canadian Economy expanded by 0.4% m/m, this was due to rising energy prices, this contributed to overall growth this saw the Loonie gain against the buck as the USDCAD hit the lowest low since September 2016, nevertheless in our opinion this data is not strong enough to change the current outlook for the LOONIE until the next BOC meeting.
NZD: Though the Employment change came out as expected which saw the employment sector grow by 0.8% nevertheless the Unemployment rate rose to the highest high since May 2016, this made the Kiwi to weaken against the greenback although the weakness in the Kiwi was as a result of an Increase in Labour Participation rate, this for me is a good pointer of confidence in the Economy as more and more people begin to enter the labour force based on confidence in the Economy.
USD: The GREENBACK fell against its major counterparts during active trading hours yesterday, This was on the back of comments by Trumps trade Advisor Peter Navarro, that Germany was grossly undervaluing the EURO on purpose, this further confirmed the Trump Administration concern of a strong dollar. This has just raised the red flag and we should be expecting the Trump administration to come up with policies that should weaken the dollar in the near future.