The EUR/GBP edged down 79 points to 0.7668 after the euro tumbled on weak German data and the pound rallied on supportive comments from the BoE Governor.
The EUR/GBP edged down 79 points to 0.7668 after the euro tumbled on weak German data and the pound rallied on supportive comments from the BoE Governor. Mark Carney begins his hearing by defending the Bank of England’s warning that Britain could plunge into recession if it leaves the EU.
Asked what principles and guidelines are being used for such forecasts, the governor says the Bank has adopted “substantially the same rules as the UK civil service”.
But there’s one big difference – civil servants support a minister, while the Bank is independent and doesn’t support government policy.
And the Bank will soon go into purdah, to prevent any officials saying anything controversial in the run-up to the June 23 referendum. However, the Bank will be setting UK interest rates on 16 June, and will release the minutes of its meeting on that day.
Germany’s economic sentiment weakened for the first time in three months, defying expectations for improvement as financial experts do not expect the strong performance of the economy in the first quarter to continue, results of the latest survey from the Centre for European Economic Research or ZEW showed Tuesday.
Later today, euro-zone finance ministers will convene to discuss the Greek situation. The biggest sticking point is as always Greece’s debt. The IMF and Germany are at loggerheads: the IMF wants unconditional and upfront debt release as a condition for its participation. Germany rejects debt relief but wants the IMF inside.
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Upcoming Economic Events that you should be monitoring:
Wednesday, May 25, 2016
Cur. | Event | Actual | Forecast | Previous | |||
USD | API Weekly Crude Oil Stock | -1.140M | |||||
NZD | Trade Balance (YoY) (Apr) | -3,940M | -3,380M | ||||
NZD | Trade Balance (MoM) (Apr) | 60M | 117M | ||||
AUD | Construction Work Done (QoQ) (Q1) | -1.5% | -3.6% | ||||
EUR | EU Finance Ministers Meeting | ||||||
USD | Goods Trade Balance (Apr) | -60.10B | -56.90B | ||||
USD | FOMC Member Harker Speaks | ||||||
USD | Services PMI (May) | 53.1 | 52.8 | ||||
CAD | Interest Rate Decision | 0.50% | 0.50% | ||||
USD | Crude Oil Inventories | 1.310M | |||||
USD | FOMC Member Kashkari Speaks | ||||||
USD | FOMC Member Kaplan Speaks |
Government Bond Auctions
Date Time Country Auction
May 25 11:03 Sweden Sek 1bn 3.5% 2022 & Sek 3bn 1% 2026 bonds
May 25 11:05 Norway Holds bond auction
May 25 11:30 Germany Eur 1bn 2.5% Jul 2044 Bund
May 25 19:00 US Holds 5Yr Notes Auction, 2Yr FRN
May 26 11:10 Italy Announces details of bond auction
May 26 11:10 Italy Holds Zero-coupon/BTPei auction
May 26 17:20 Sweden Details of I/L auction on Jun 02
May 26 19:00 US Holds 7Yr Notes Auction
May 30 11:10 Italy Holds bond auction
Jun 01 10:30 Denmark Holds bond auction
Jun 01 11:30 Germany Eur 4bn Apr 2021 Bobl
Jun 01 11:30 UK 1.5% 2021 Gilt
Jun 01 17:20 Sweden Announces details of bond auction on Jun 08
Jun 02 10:30 Spain Holds bond auction
Jun 02 11:03 Sweden Holds I/L bond auction
Jun 02 11:50 France Holds bond auction