With no crucial economic releases in the UK today, investors are likely to focus on Wednesday’s publication of the minutes from the BoE’s last policy. It remains to be seen whether some of the BoE officials continued to vote in favour of an immediate rise in the nation’s interest rates.Across the Atlantic, the US Fed Chief’s speech will be closely watched in order to monitor if Janet Yellen voices support to keeping monetary policy loose over a prolonged period in the midst of dampening outlook for growth in the global economy. In the Euro zone, the preliminary PMI numbers across key European nations scheduled for release next week will help investors gauge if the macro trend in the region continues to weaken.
Yesterday’s hawkish comments from the BoE MPC member, Martin Weale, provided little support to the Pound against the majors. Sterling briefly rose above the 1.60 mark against the greenback following weak US retail sales data, but found it difficult to remain supported at that level due to the mostly mixed UK labour market report released earlier yesterday.With no crucial economic data in Britain today, investors have shifted their focus to industrial production data in the US. Market participants expect this to rebound for September. Any upswing in these numbers might prove crucial in reinstating confidence among investors, particularly amid concerns that a global slowdown might be weighing on the US economy.
Today’s employment data has revealed that the number of jobless claimants in the UK continued to decline for September, albeit at a slower pace. This should provide some relief to Sterling investors, especially considering yesterday’s weak UK consumer price data which showed a more than expected drop for inflation. However, with recent mixed economic data in the UK, the prospects of a delay in an interest rate rise cannot be ruled out. In the Euro zone, a speech from the ECB Chief later today will be closely watched to gauge the prospects of further stimulus measures in the region.Across the Atlantic, today’s retail sales numbers could spur some volatility in the greenback against the majors.