Expect big moves in USD today
This morning we have already seen the Bank of England minutes released which showed all members voted unanimously to keep the UK interest rate on hold at 0.5% with no change to the asset purchase program/QE. The ‘as expected’ news has seen GBP take a small dip from this mornings highs.
With the first significant risk event of the day already behind us the focus will now move to the Consumer Price Index data from the US at 13:30 UK time and the simultaneous release of US retail sales. Expectations are for these figures to be similar to previous months and thus have limited impact on USD.
The big event of the day will be the October FOMC minutes. Released at 19:00 UK time. the markets will be analysing every word to try and formulate their expectation of when the Federal Reserve might start tapering.
All in all expect some significant movement in USD today, particularly EUR/USD.