The USD slid against a number of currencies yesterday, as traders dropped the greenback in favor of higher yielding equities as the global stock markets rallied. Additionally, the EUR gained due to positive economic figures on euro zone industrial orders and a robust euro zone Flash Services PMI.
As for today a batch of economic news is expected from the U.S, Britain and euro zone. Forex traders should definitely pay close attention to EUR, USD, and GBP pairs, as heavy market activity is predicted.
Here are a few of today’s leading events:
9:30 GMT: British Public Sector Net Borrowing
This is monthly report that measures the difference in value between spending and income for public corporations, the central government, and local government during the previous month. Should this report come in at or above expectations, the British pound could see some strength.
15:00 GMT: US Consumer Confidence
The Consumer Confidence report provides an accurate gauge of current economic conditions and the overall economic situation in the United States. As a leading indicator of consumer spending, this report has a direct correlation with the strength of the US economy. Today’s forecast is for higher growth than last month, indicating a positive return to economic prosperity is beginning to take shape. Such an outcome should boost the USD.
18:40 GMT: BOE GOV King Speaks
This speech is very important and is very likely to create GBP volatility. While the impact of such statements is often not forecasted, there is always the possibility that BOE will comment on a number of developments in the region and hint at future policies. Speculators will attempt to use those statements as a gauge of direction for the GBP in the coming weeks and adjust their positions accordingly.
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Anton Eljwizat is a Currency Analyst with ForexYard. His experience in writing technical analyses for trading companies such as ForexYard has helped Anton stand out among other analysts. His understanding of technical indicators and chart analysis helps him provide some of the most groundbreaking analysis in the market today. His writings have been published on the ForexYard Trading Blog and affiliate websites. Anton holds a degree in Business Management from Ryerson University as well as a degree in Finance from Centennial College in Canada.
