- French Industrial Production m/m: 0.2% vs. -0.5% forecast, 1.2% previous
- French Manufacturing Production inline with -0.3% forecast, but below 1.6% previous
Sterling was all over the place this morning as the the Scottish referendum story continues to develop and ahead of a new poll on the issue, that will be released at 9:30 pm GMT. Just ahead of the London open, the pound erased the Asia session gains (GBP/USD dropped 100 pips from a session high around 1.6150) only to find support mid-morning and rally back up to pre-open levels. Needless to say, it’s been a wild ride for forex traders, but it looks like Sterling bulls will remain up on the session for now:
GBP/USD is up 24 pips (+0.15%) to 1.6129, GBP/JPY is up 109 pips (+0.63%) to 172.12, and GBP/AUD is the big mover on the day, up 157 pips (+0.91%) to 1.7660
Speaking of the Aussie, it’s fall continued during European trade which was sparked by weak consumer sentiment data during the Asia session. It’s the big overall loser on the session, with momentum still in play to the downside for the currency:
AUD/USD is down 68 pips (-0.75%) to .9131, AUD/JPY is down 23 pips (-0.24%) to 97.44, and AUD/CHF is down 54 pips (-0.64%) to .8526
The forex calendar for the afternoon London/morning U.S. session is once again pretty light, but they’ve still got potential to add to this rise in volatility.
At 1:30 pm GMT, we’ll get capacity utilization data from Canada, which is forecasted to come in at 82.9% vs. 82.5% previous.
At 2:45 pm GMT, the Bank of England will report inflation conditions and their economic outlook to the Parliament’s Treasury Committee. This can be a big market mover for Sterling, especially with any new insights on monetary policy and any commentary from Governor Carney on recent British Pound volatility.
And at 3:00 pm GMT, we’ll get U.S. wholesale inventories data, which is forecast to come in at 0.5% vs. 0.3% previous. This is a mid-tier report that has been on a downswing since printing 1.1% gains a few months ago, but don’t expect too much reaction too it unless we get a big surprise.
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