The Bank of England Governor Mark Carney, appeared in the UK Parliament yesterday. Markets were looking for any further updates or comments with regards to the potential Brexit. Carney and the Central Bank kept as quiet as possible on this subject, as the campaign has now officially started and after saying all they wanted to say on the matter last week. The Pound continued to strengthen throughout the day yesterday as a risk on appetite clouded the market.
In the morning, Eurozone powerhouse Germany, posted high tier data in the form of the German ZEW Economic Sentiment. The figure posted a better than expected 11.2, its best reading this year as institutional investors and analysts remain optimistic about the German economy. Following this, the US released last month’s building permits reading, as markets gained an insight into the US’ housing market. Building permits registered a worse than expected 1.09M, a one year low.
Today’s focus surrounds the UK, as we see the release of several high tier labour data this morning. The headline figure will be the average earnings, which is to remain constant at 2.1%. However a reading either side of this could see volatility for the Pound as this is one indicator the Bank of England are using to determine a rate rise. The claimant count change is forecast to increase to -11.9k, whilst the unemployment rate is expected to remain sticky at 5.1%. Across the pond, the US Crude Oil Inventories are scheduled to rebound from last month’s decline.