1. Today’s eco calendar contains German Ifo and US durable goods orders. We expect their impact to be limited ahead of tomorrow’s ECB meeting.
2. The GBPUSD is the day’s biggest mover so far, after UK GDP data pointed a 0.4% growth compared to 0.3% which was forecasted. Additionally, the UK Finance Minister mentioned some very optimistic comments about the future of the UK economy, something that gave rise to speculation about raising interest rates in the near future. The GBPUSD rose from 1.3110 to 1.3185 after this. GBPJPY also benefited with the pair rising 100 pips to 150.50.
3. Australia’s dollar was the biggest mover among major currencies, tumbling as much as 0.8 percent against its U.S. counterpart to a 3-1/2-month low after weak Australian inflation data. This makes investors see less chance of increases in Australian interest rates in coming months.
4. GOLD is also suffering pressured by stronger equities and a firmer dollar amid speculation over who will be the next U.S. Federal Reserve chief. The metal dropped to $1271, a level not seen since 6th of October.
5. USDJPY trades at the highest level since 3.5 months at 114.14 helped by reports that Republican senators were favoring John Taylor to become the next head of the U.S. Federal Reserve. Taylor, a Stanford University economist, is seen as someone who could put the Fed on a path of faster interest rate increases compared with current Fed Chair Janet Yellen, whose term expires next February.