Market Update – Dollar Struggles
- Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
- April 12, 2018
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Bank of England credit conditions survey may receive some attention today. Markets will be looking for signs of an impact from last November’s interest rate hike on the demand for or availability of credit.
Tonight, BoE Governor Carney is talking in Canada, but unlikely we will get anything new regarding monetary policy from this.
In Europe, expectations for today’s Eurozone industrial production release for February have been scaled back after weaker than expected outturns for some of the largest countries in the region.
The output is now expected to rebound by a minimal 0.1% following January’s fall of 1.0%.
With other indicators also suggesting that Eurozone economic activity has slowed in early 2018, expectations for Q1 GDP growth are being revised down.
Later, the ECB will release the minutes of its last policy meeting. These are expected to confirm the central bank’s intention to gradually tighten monetary policy but are unlikely to reveal any more detail about the timetable.
The dollar held near two-week lows this morning against a basket of currencies as investors remained cautious over possible Western military action against Syria.
Hawkish minutes from the U.S. Federal Reserve in the previous session did little to lift the dollar.
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