On Wednesday, the outcome growth regarding the Spanish bonds reminded investors, that the crisis in the Eurozone is far from being completed. Despite this, large speculators continue reducing the short euro positions.
The Bank of England Meeting Minutes showed that all committee members voted to keep rates steady, while 7 out of 9 people preferred to keep the scale of quantitative easing. Thus, we can assume that the rate increase is unlikely in the foreseeable future, as well as termination of the Asset Purchase Program, that leaves the British currency to be in a vulnerable situation.
Planned for today:
12:00 – France. PMI Manufacturing;
12:00 – France. PMI Services;
12:30 – Germany. PMI Manufacturing;
13:00 – Eurozone. PMI Composite;
13:00 – Eurozone. PMI Manufacturing;
13:30 – UK. Retail Sales;
16:30 – Canada. Retail Sales (MoM);
16:30 – USA. Initial Jobless Claims;
18:00 – USA. Leading Indicators;
18:00 – USA. House Price Index (MoM);
19:00 – Eurozone. Euro-Zone Consumer Confidence;
20:45 – USA. Fed's Bernanke Gives Lecture at George Washington University.
This day is quite saturated with macroeconomic statistics, but in general it will have a purely indicative impact, which will not determine the long-term fate of this or that currency. But, the data regarding the applications for unemployment benefits in the U.S. may give an idea of the non-farm payrolls data, thus they can cause the volatility splash in the market.
And as for the short-term news trading, it is wise to pay attention to changes in the retail trade in Canada and the UK. In the UK, the data are expected to be at 0.5% against the previous one - 0.9%. In case the indicator is at or above 0.1%, it would be advantageous to buy the British pound against the U.S. dollar, in case the indicator of 1.0% and below, it is advisable to sell it. At the same time, there must be a primary reaction to the market and only after that, it is wise to enter into the transaction on the rollback. The optimal way is to use the best or the worst data for opening positions regarding the trend.
The same situation is with retail sales in Canada. The expected value of 0.5% against 0% the previous one. The value of 0% and below — to buy the U.S. dollar against the Canadian one, 1.0% and above - to sell it.