All Quiet on the UK Front
The main news in the forex markets today is coming out of the US where we wait for the GDP figures, unemployment claims and pending home sales.
These are not expected to be positive for the US Dollar, as it is widely expected that the GDP reading will be negativefor the first time in 3 years. Although this is still being blamed somewhat on adverse weather conditions, some analysts aren’t convinced and lay the blame on less construction spending and inventory investment.
In Europe, there are public holidays in France and Germany for Ascension Day and the markets are bracing themselves for what Mario Draghi is going to do at the ECB meeting next week.
There seems to have been talk of when/whether the ECB is going to react to the economic crisis and it appears that the time for action is finally next week and it looks like the market is beginning to price in both a rate cut and also the long term refinancing operation.
All quiet on the UK front, as no data is expected out until next week.
In other news, the world’s best performing currency in the last month has been the Russian Rouble. This is due to the easing of tensions between Russia and Ukraine but is just seen as a blip as the economic outlook for Russia is still extremely bleak.