Big Data Tuesday
Well, today we have a pretty full dance card so let’s get cracking. The Pound day by day is just edging up a bit, nothing dramatic but when we look particularly at the GBP/EUR it is really lovely to buy.
Coming out this morning, we have UK Consumer Price Index and the Retail Price Index. These look set to report a negative figure which would hurt the strength of the Pound given it affects our mandate driven interest rate policy. We also have the Producer Price Index, which is also forecast as a negative figure. The PPI can be seen as a leading indicator and if this is negative too it could be interpreted as a contributor to more CPI reduction. So perhaps a little risk to the Pound overall from these three releases.
After this, we have the ZEW Survey from Germany which measures investor sentiment (showing the difference between those who have a positive and negative view). The forecast for this is currently a positive overall statement so could add a little pro-Euro push coupled with the Swiss National Bank chairman speaking this evening. He will receive a lot of attention given the recent moves made by them in removing their currency peg to the Euro and I will be listening for any clues of reactions to pressure from their large exporters.
Lastly, we do have some US Treasury Bill auctions today so worth keeping a casual eye on this for their ability to raise capital cheaply. Probably no worries there.
If you’re buying Euros, the theme today is that it might be worth looking sooner rather than later.