The U.S Dollar became stronger late on Wednesday when Congress said it is working on a tax reform package. The Bank of England will release their Monetary Policy Summary today, and Core Consumer Price Index results will come from the States.
Congress Talks Tax Plan, Inflation Data Proves Weak
The Producer Price Index reading from the U.S proved disappointing on Wednesday. The outcome of 0.2% was below its estimate and showed inflation remains near a standstill. However, the U.S Dollar did get stronger against the major currencies late in the day, as Congress began to talk about a potential tax reform package being coordinated. Wall Street experienced cautious gains yesterday. Today Core Consumer Price Index results will be published in the States.
China Industrial Numbers Disappoint, Shanghai Shenzhen Index Declines
Industrial Manufacturing results from China this morning missed their forecast. The result of 6 percent was below its expected gain of 6.6 percent. Equities in Asia have been negative today and the Shanghai Shenzhen and Hang Seng composites have led the declines. The Yen has been slightly weaker against the U.S Dollar and is near the 110.50 juncture in early trading.
Monetary Policy Summary Coming, Pound Reverses as Buying Stalls
The Bank of England will release its Monetary Policy Summary today. The Pound produced volatile trading on Wednesday, as it tested long term highs and then saw its rally stall as it fell to lows around 1.32 against the U.S Dollar. The Average Earnings Index reading from the U.K yesterday had a lackluster result. Inflation numbers will come from France today.
Gold Sells Off and is Testing Lows, Gold is Valued Highly but Volatile
Gold has been sold off after trading near short term highs on Wednesday. The 1320.00 U.S Dollars an ounce level looks to be an important focus for speculators. The precious metal remains highly valued, but will likely see more volatility today.
Bank of England Pronouncements, Crucial Inflation Data from States
The Bank of England’s Monetary Policy Summary will get the attention of global traders at 11:00 GMT.
- 11:00 AM GMT U.K., Bank of England Monetary Policy Summary
- 12:30 PM GMT U.S., Core Consumer Price Index
- 12:30 PM GMT U.S., Unemployment Claims
Yaron Mazor is a senior analyst at SuperTraderTV.
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