Yesterday morning, the Pound rose 1.5% against the Greenback after a suspected “fat finger” on the British Pound caused a bout of unexpected volatility. Markets were left confused after the sudden move. Some speculated that a mistyped transaction triggered automatic orders to sell or buy currencies to avoid losses.
The economic calendar was relatively light yesterday with the only piece of notable data released from the Eurozone. The Euro-area economy grew faster than previously estimated in the first quarter. A revision released yesterday showed GDP rose 0.6% in Q1. However, the Eurozone economy is still forecast to struggle in the second quarter as Brexit risks and elections weigh on the single currency union.
The UK Manufacturing Production monthly gauge will hit the wires in the morning. Manufacturing Production reading is forecast to remain constant at 0.1% for May. After the disappointing NFP figure last Friday, the US will provide another insight into their labour market with the release of the Jolts Job Openings figure. This will definitely be monitored to see if it increases to 5.82m as forecast, or if again the labour market will disappoint. Later in the evening, the central bank of New Zealand will release their interest rate and policy statement, where a cut from 2.25% to 2% is expected.