FX & CFD trading involves significant risk
07:00 Germany CPI +0.1% +0.1% +0.1%
07:00 Germany CPI, y/y +1.5% +1.5% +1.3%
09:00 EU ECB Monthly Report
09:30 UK Trade in goods -5.00 -4.45 -4.60
12:00 UK BoE Interest Rate Decision 0.5% 0,50% 0,50%
The pound stayed lower against the dollar after the Bank of England decided to maintain its asset- purchase program and kept interest rates at a record low.
All economists predicted central bank Governor Mervyn King would keep the so-called quantitative-easing program unchanged at 200 billion pounds ($315 billion). Economists in a separate survey said the bank would hold the main interest rate at 0.5% .
The decision “ought to be relatively neutral for sterling,” Adam Cole, head of global currency strategy at RBC Capital Markets.
Sterling depreciated as a report showed house prices fell. Halifax House Prices fell 0.7% y/y after +1.2% in October and slept -0.1% m/m after +0.3%.
Australia’s currency retreated after it earlier rise after the statistics bureau said employers added 54,600 workers in November, reducing the unemployment rate to 5.2% from 5.4% in October. Economists forecast 20,000 extra jobs, according to a survey.
Meanwhile, the dollar rose against European currencies but lost ground against the yen as traders continued to mull over the effects of this week’s large sell-off in US and global government bond markets triggered by the agreement on extending Bush-era tax breaks.
EUR/USD printed session lows on $1.3190 after it failed to set above $1.3300. Currently rate consolidates within the $1.3212 range.
GBP/USD fell from $1.5840 to $1.5730, but managed to recover to $1.5756 after BOE rate decision.
USD/JPY slowly rebounded from Y83.60 to Y84.10.
US Jobless claims report is due to come at 13:30 GMT.
All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.