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No Yellen from the rooftops

No Yellen from the rooftops

Sterling had another volatile day of trading yesterday and during the Asian trading session GBPUSD reached fresh lows of 1.2789.

Sterling sank up to 1.18% versus the Euro yesterday as the negative sentiment surrounding the Pound continues. The European Central Bank (ECB) monetary policy meeting accounts report is due this morning.

The second ballot in the Conservative Party leadership contest will occur later today, bringing us another step closer to having a Prime Minister. May’s Monthly Manufacturing Production data is expected to have dropped.

We saw mixed results from the States yesterday as the Trade Balance and Services PMI Data both came in worse than expected. Consequently, the Dollar lost a little lustre early in the American trading session. The Greenback then recovered its losses against both the Euro and the Pound before the Federal Open Market Committee (FOMC) Meeting minutes were released yesterday evening.

Last night’s FOMC minutes showed exactly what was expected: little room for change in the near future. The FOMC’s rate forecast and Yellen’s recent testimony meant that the rate expectations were already priced into the markets, so the minutes caused little movement. Fed Governor Taullo commented on the need to wait for further evidence of the consequences of the UK’s vote to leave the EU.

Data to Watch: 9:30am GBP Manufacturing Production MoM, Industrial Production MoM. 12:30pm EUR ECB Monetary Policy Meeting Accounts. 1:15pm USD ADP Non-Farm Employment Change. 1:30pm USD Unemployment Claims.

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