Posted on | August 9, 2010 | No Comments
So far the markets are quiet as we start the new trading week. Aside from some mild strength in the British pound, there’s not much to speak of so far.
The FTSE and other European stock markets are likely to open up strongly, but that will primarily be down to playing catch-up with the late session recovery on US markets from Friday.
There’s no meaningful economic data to come today. We’ve already had Australian home loans data, which came in below estimates, but this appears to have had little impact on the AUD/USD.
Here’s a heads up of the main announcements for the first half of the week.
We have the Japanese central bank’s latest monetary policy statement. No surprises are expected from this, but the following press conference may reveal a few tip bits that reveal how the bank is feeling about certain problems such as the strong yen.
Any hints of currency intervention (or lack of) could impact forex pairs such as the USD/JPY.
Tuesday’s main event is the US Federal Reserve interest rate statement. No change is expected on the headline rates, but the big question is what the Fed will be doing with the cash it is now receiving in interest payments from the mortgage bonds it purchased.
Will it buy more bonds with the cash, adding more liquidity? Or will it start to withdraw from the market and simply let the cash payments build up?
Either way, in for the forex spread betting markets it could be a big day for pairs such as the GBP/USD and USD/JPY.
Also don’t miss the Chinese Trade Balance data schedule for release some point on Tuesday.
Wednesday’s highlights include the Chinese inflation data at 03.00 GMT, following by UK unemployment claims figures at 09.30. Will the new UK government’s austerity measures start to bite as expected? Keep an eye on the GBP/USD.
By Dave Evans, BetOnMarkets.
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