Yesterday’s higher than expected inflationary data had traders buying the pound as the market moves up its expectations for an interest rate increase from the Bank of England. Today the spotlight will once again be focused on the Britain with budget numbers due out as well as the BOE voting record from the previous monetary policy meeting.
Today’s major news events:
GBP – MPC Meeting Minutes – 10:30 GMT
Expectations: 3-0-6. Previous: 3-0-6
A hawkish tone from the BOE will only help to add to yesterday’s gains for the pound. GBP/USD resistance is found at 1.6400 and 1.6460.
GBP – Annual Budget Release – 13:30 GMT
Chancellor of the Exchequer George Osborne will release the UK budget that may show increased fiscal responsibility by the UK government which could be a further catalyst for the pound.
USD – New Home Sales – 14:00 GMT
Expectations: 291K. Previous: 284K
US housing data have begun to pick up over the last three months. This could provide the greenback with some much needed support. The USD/CAD could continue to rise to the 0.9960 level.
Oil – Crude Oil Inventories
Expectations: 2.0M. Previous: 1.7M
A larger than expected drawdown in crude oil stocks will add further fuel to the fire as Middle East tensions are driving the price of crude oil higher. Resistance for the commodity is found at $106.90. Support is located near $100 and $96.20.
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Russell Glaser is a Currency Analyst with ForexYard. Russell provides analysis in the FX spot market by employing fundamental research methodologies. In addition to currencies, Russell closely follows the correlation between the Commodities market and the movement of equities. His writings have been published on the ForexYard Trading Blog and associated partner sites. Prior to joining Forexyard, Russell Glaser served as a management consultant in the financial services industry, advising Fortune 100 companies. Russell holds a degree in finance from the Fisher College of Business at The Ohio State University.
