Busy day for traders as we await UK Autumnal Forecast; EU rate decision and US preliminary GDP data
City Index December 5, 2013 2:26 PM
<p>It is a big day for central banks today: we start off in the UK with the Autumn Forecast statement due on the economic outlook […]</p>
It is a big day for central banks today: we start off in the UK with the Autumn Forecast statement due on the economic outlook and a preview of the government’s budget for the coming year. Then the rate decision and asset purchases to follow. The markets are not expecting any surprises here. The BoE is sticking to the programme with a bullish tone to the ongoing recovery.
The ECB rate decision is due out today and is expected to stay at 0.25% but, as the last month showed, they are willing to cut when they want with no warning and – since the cut – a lot of talk of negative rates will be a possibility.
It will be a tense few minutes going into this decision. Draghi will deliver his speech after the decision, which is always a volatile time for the euro, as he talks about the economy and growth – dependent on what the rate decision was earlier.
Some important figures out of the US as well today, with the prelim GDP expected to come in slightly higher than before. Unemployment claims are also due and are expected to rise slightly; both good indicators for another big day tomorrow when non-farm payrolls are released.
So, we are set for volatile day in FX with a lot of data to take in throughout the morning and afternoon session.
Supports 1.3575 1.3525 1.3485 | Resistance 1.3635 1.3680 1.3720
Supports 101.20 100.95 100.55 | Resistance 102.50 102.90 103.40
Supports 1.6325 1.6300 1.6230 | Resistance 1.6440 1.6480 1.6500
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