- Australia CB leading index down by 0.1%
- Nikkei up by 0.93% for the day
- BOE minutes to show unanimous vote to keep policy unchanged
- Swiss ZEW economic projections data due
Looks like dollar traders are sittin’ tight ahead of today’s FOMC decision! EUR/USD held on to the 1.3550 minor psychological level, barely moving 10 pips in either direction, while GBP/USD hovered around the 1.6960 levels. USD/JPY has been edging higher and hitting highs around the 102.25 mark while USD/CHF is holding below the .9000 mark and has dipped to a low of .8989.
The freshly released Australian CB leading index showed a 0.1% decline in April after staying flat in March, indicating that economic activity could see a slowdown in the coming months. AUD/USD sold off from a high of .9344 to a low of .9325 moments after the release. EUR/AUD managed to keep its head above the 1.4500 mark while GBP/AUD edged closer to 1.8200.
The British pound is set to take the spotlight in the London trading session as the BOE will release the minutes of its latest monetary policy meeting. Although CPI figures have disappointed yesterday, pound bulls are still hopeful that MPC members are as supportive of an earlier rate hike, just like BOE Governor Carney is. The minutes could show a unanimous vote in terms of keeping policy unchanged but make sure you keep your eyes peeled for any remarks concerning housing inflation and economic improvements in the U.K., as these could drive the pound higher.
Also due in the next few hours is the Swiss ZEW economic expectations report, which might lead to more franc weakness ahead of the SNB rate decision this week. Stay on your toes!
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Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!