ECB’s Economic Outlook in the Spotlight TodayThere were no major surprises from the Federal Reserve’s FOMC Meeting Minutes publication yesterday, but it did highlight the U.S Central Banks ambition to raise interest rates in 2018.
The Bank of England conducted its Inflation Report Hearings and said underlying inflation is under control.
U.S Fed Express Hawkish Sentiment, European Central Bank Report Today
The Federal Reserve released its Meeting Minutes late on Wednesday and it expressed the belief that growth in the U.S will be stronger than previously forecast. The publication essentially outlined reasons for further interest rate hikes. The Fed is widely expected to increase the borrowing rate by another quarter of a percent in late March. And as the report was digested by investors, Wall Street began to stumble late in its session. Interestingly, the European Central Bank will release their Monetary Policy Meeting Accounts today. And investors will be keen to see if the ECB discussed the expanding economy of the European Union during their last meeting and if they acknowledged the need to counter the U.S central bank’s aggressive stance.
Bank of England Says Underlying Inflation in Control, U.S Dollar Stronger
The Bank of England presented a rather rosy picture regarding its ability to manage the U.K economic frontier on Wednesday. Governor Mark Carney explained the central bank believes underlying inflation has been brought under control and interest rate hikes will not be swift. The Pound and Euro range traded quite a bit on Wednesday but did fall to lows as a sentiment from the U.S Fed’s publication was examined. Choppy conditions have been pervasive versus the U.S Dollar this week. And the Yen has continued to trade within its weaker stance against the U.S Dollar. Japan will release important inflation data early on Friday.
Gold and U.S Crude Oil Whipsaw, Speculative Traders Being Challenged
Gold and U.S Crude Oil experienced whipsaw trading on Wednesday and will get plenty of attention in the coming days. The precious metal remains under pressure and sold off in the aftermath of the Federal Reserve’s report. Crude Oil has kept its strong mid-term range intact but has proven rather challenging for short-term speculators.
U.K Growth Numbers This Morning, Canadian Retail Sales Today
The U.K will release its Gross Domestic Product data at 9:30 GMT and it will be looked at by global investors.
- 9:30 AM GMT U.K, Second Estimate GDP
- 12:30 PM GMT E.U, ECB Monetary Policy Meeting Accounts
- 13:30 PM GMT Canada, Core Retail Sales
Yaron Mazor is a senior analyst at SuperTraderTV.
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