GBP: The Inflation report would be hitting the news wires today at 12.00 GMT with a press conference by Mark Carney following at exactly 12.30PM GMT, The report today will tend to be dicey as traders try to glean information as to the future policy path of the BOE in the wake of the Brexit Crisis, In my Opinion I would expect the BOE to over-look the Temporal effects of this inflation rise because the Brexit Risks still remains, I think it would be too early for the BOE to act now especially as this is coinciding with the soon to be triggered Article 50 which would initiate the process of the UK exiting the EUROPEAN Union. We may see a possible sell-off on the CABLE.
EUR: The EURO PMI expanded for the 42nd Consecutive Month, being above the 50 index mark that depict an expanding economy, this further confirms that the EUROZONE economic recovery is well underway. This is a boost for the Single Bloc economy, and Traders will keep watch on this numbers incase downside risk arises.
GBP: The Manufacturing PMI has expanded for the 6th Consecutive Month now since Brexit, showing the UK Resilience to Brexit Shocks, We will be looking out for the BOE Inflation report today to glean clues as to The BOE’s Governor Future plans for the economy.
USD: The ADP Non-Farm came out strongly yesterday at 246K beating expectations by a very wide margin, on the back of this Market participants are expecting the Friday Job numbers to be much more better than the Forecast, The ISM Manufacturing figures also beat expectations with the Employment index showing expansion as well, the index rose to 56.0 the highest since November 2014, the Employment index also came out at 56.1 the highest since May 2014 and the fifth starught gain, all of this makes a strong case for a better than expected NFP data on Friday.
The FOMC was also a bit disappointing as traders were looking out for more hawkish tone in the FEDZ statement. The FEDZ maintained a neutral stance making no changes or adjustment to their December Statement, this makes further case for dollar to weaken in the days ahead as Trumponomics takes over the markets, President Trump has raise concern for the Strength of the Dollar, this is making market players believe he will come up with policies that may weaken the dollar temporarily.
USOIL/WTI: US Oil Inventories increased by 6.5M, above the 2.6M forecasted this is four straight weeks of increase in US Oil Stock piles