UK MPC votes and average earnings today
City Index January 21, 2015 2:49 PM
<p>The USD/JPY has given up all of yesterday’s gains after the Bank of Japan cuts it near-term inflation, but leaves key easing policy unchanged. At the […]</p>
The USD/JPY has given up all of yesterday’s gains after the Bank of Japan cuts it near-term inflation, but leaves key easing policy unchanged. At the time of writing, it’s trading 117.50 a fall from 118.84 as its high.
The Kiwi also made some big moves just before the close as the CPI data comes in at -0.2% softer than expected. It’s currently trading 0.7660 a bounce from its low of 0.7629.
Today’s main event is from the UK, with the early morning data on the MPC Official bank rate votes and asset purchases votes. There should be no surprises and we expect to see a split of 7-2 on rates staying at 0.5% and a unanimous vote to keep asset purchases as they are. Average earnings index are also due up and expected to rise to 1.7% from 1.4%, which should help with the recent strength in the pound as it affects how the market sees inflation progress. Currently GBP/USD is trading at 1.5160.
The Bank of Canada will announce its rate decision today which is expected to be at 1%, with a recent sell-off in the CAD due to a possible signal of rate cuts rather than a rate rise for the BOC. Currently USD/CAD is trading at 1.2080.
Supports 1.2000-1.1895-1.1840 | Resistance 1.2170-1.2220-1.2320
Supports 117.25-116.80-116.60 | Resistance 119.10-119.60-120.30
Supports 1.5070-1.4990-1.4925 | Resistance 1.5210-1.5275-1.5350
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