After the Pound finally buckled last week against the bullish Dollar data; yesterday, Sterling finally found some support. The first week of ECB bond buying contributed to the collapse of EUR/USD. Worries in Greece and announcements of an extend QE timeline in the Eurozone have weakened the Euro substantially this year. After this initial fall we expect Euro declines to now become a little more gradual.
Regarding yesterday’s data releases; the US released its Empire State manufacturing index and industrial production in the afternoon. Both figures disappointed and missed economists’ consensus with the Empire State manufacturing index posting its worst reading this year. The poor figures suggest that the harsh winter weather the US is experiencing this year is beginning to filter through to economic activity.
On today’s docket the Eurozone powerhouse Germany release their ZEW economic sentiment followed by the final reading of Eurozone CPI. In the afternoon the US release their building permits and housing starts for February. As we gain an insight into the US housing market, the FOMC also start their two day meeting with Wednesday’s decision highly anticipated by economists’.
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