Trade Balance figures from Europe, UK and the US
City Index August 9, 2012 1:00 PM
<p> EUR/USD Range: 1.2325-1.2450 Support: 1.2300 Resistance: 1.2450 Euro was confined to range trading throughout the New York and Asian session, drifting between 1.2345 and […]</p>
Euro was confined to range trading throughout the New York and Asian session, drifting between 1.2345 and 1.2385. Today we’ll see the release of the ECB’s Monthly Bulletin as well as Italian trade balance figures, expected to show further contraction of Italian balance of payments. The figures are out at 9am and are expected to come in at 0.97bn.
Range: 1.5500 – 1.5800
Overall the BoE Inflation Report signalled contentment with current BoE policy expectations, with no view to boost expectations of further policy easing. CPI projection was maintained at around 1.6% and GBP forecast lowered to 2%. The report highlighted concern about the impact on building societies following a cut in the bank rate, a contributing factor towards the MPC’s decision not to cut rates so far, also noting the Euro area to pose the greatest risk to UK outlook. 9.30am marks the release of UK Trade Balance figures. July’s data exceeded expectations at -8.4bn, however, we’re expecting a marginal decrease to -8.5bn.
Overnight, AUD employment data proved better than expected, with 14k more people in employment during July and unemployment falling to 5.2%. The strong payroll data fuelled speculation that the RBA may refrain from cutting interest rates in the short term. Consequently, we saw AUD gain steadily to 1.0600.
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