We’ve reached the end of the week and one that has seen more ups and downs than Mick Jaggers bed. There was very little on offer from the Bank of England yesterday other than the fact that the asset purchase fund level has remainedthe same at £200bn. We will have to wait nearly two weeks before the minutes are released before markets can get a clear view as to what was going on behind closed doors.
However, the European Central Bank did raise rates yesterday as they were expected to which I must say did take me a little by surprise. The one thing that didn’t surprise me was the reaction and the current position of the Euro against the other major currencies. Generally raising interest rates is seen as a bullish move and you would expect to see gains made by the currency, however in its current plight investors will still be very cautious as the European debt situation is almost certain to rear its ugly head in the not too distant future. The debt situation will still rumble on for some time and I think the Eurozone as a whole are in a far worse position than they would have everybody believe which is why I still feel that Euro weakness will be on the cards later this year.
The main focus of today will be data releases from the US. With non-farm payrolls and the unemployment rate both being released at 13:30pm today. The general expectation is to see slightly more positive numbers from the US which could give the US Dollar a short boost which will most likely come against the Euro.
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