Opportunity to sell Euro NOW
Ahead of tomorrow’s significant UK labour and inflation data, today will be quiet as far as GBP is concerned. However, there is still plenty of scope for other currencies to move around it.
The German ZEW survey will be of significance today. Released at 10am (as you read) the ZEW survey reflects the difference between the share of institutional investors that are optimistic and the share of institutional investors that are pessimistic.
A positive number means that the share of optimists outweighs the share of pessimists. Usually, an optimistic view is considered as positive (or bullish) for the EUR, whereas a pessimistic view is considered as negative (or bearish). The expectation this month is for a figure of 63.5. This is fairly positive and will probably see EUR strengthen a degree – however this is likely to be short lived.
Southern hemisphere action…
Whilst the release and content of the Australian budget is unlikely to make waves today, this evening’s (11.45pm UK time) speech by Reserve Bank of New Zealand Governor, Graeme Wheeler will be monitored closely for hints of just how much the RBNZ may be increasing interest rates in the coming months.
Whilst the comments could push NZD in either direction, expect a fairly different GBP/NZD by tomorrow morning.
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