Market Review for February 04, 2016

Market Review for February 04, 2016

Source: Vinson Financials Broker (Review and Forex Rebates up to 85%)

Yesterday, New York FED President William Dudley comments weaken the USD. More specifically he referred to the upcoming interest rate increases and the slowdown in global economy and that the strengthening of dollar could have significant consequences for the US economy. Also we had dovish comments from Fed Governor Lael Brainard therefore a possible monetary policy review from FED side is possible. To all that add the fact that yesterday US ISM Non-Manufacturing PMI came in worse that expected at 53.5 versus 55.1 forecasted so EURUSD trading at 1.1140 is justified. Also the US Crude Oil Inventories were announced at 7.8 million barrels.

BOE is the main focus today as the UK central bank will release rate decision, meeting minutes and the quarterly inflation report. Analysts are expecting that BOE is widely to keep interest rate unchanged at 0.50% and maintain asset purchase target at GBP 375 billion. The main focus is whether BOE would lower inflation and growth forecast.

ECB Mario Draghi warned earlier today that ECB will keep fighting the low inflation and that they may review the monetary policy in March meeting. Elsewhere, Australia NAB Quarterly Business Confidence rose to 4. Switzerland released SECO consumer confidence at -14. Eurozone also released retail PMI and ECB bulletin. During US session will release challenger job cuts, Prelim Nonfarm Productivity q/q, Unemployment Claims and Factory orders.

View our full economic calendar for a daily roundup of major economic events.

Data releases to monitor:

GBP:      BOE Inflation Report, MPC Official Bank Rate Votes, Monetary Policy Summary, Official Bank Rate

USD:      Challenger Job Cuts y/y, Unemployment Claims, Prelim Nonfarm Productivity q/q, Factory Orders m/m