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Dollar on a positive footing

There are rate cuts predicted all around the globe this week with big cuts expected in Australia, UK and the Eurozone.

The Euro was under pressure at the end of last week when inflation figures came in at 2.1 % from the previous 3.2%. This along with Eurozone unemployment number showing an increase to 7.7% helped undermine economic sentiment and indicate that the ECB could go for a bigger cut than first predicted this week.

Sterling did improve against the Euro but not as much as dealers were hoping as its progress was hindered by a depressed figure from the CBI retail trade survey.

This morning already we have had an uninspiring retail sales figure from Germany and at 9.00 UK time they have their PMI manufacturing number due to show a further downturn. At 9.30 UK time we have our consumer credit and PMI manufacturing numbers due.

Stateside we have construction spending and ISM manufacturing numbers out. Canada sees their release of third quarter GDP hopefully produce a better number than last time. Then overnight we have data out of Australia which will give indications of how far they will lower their interest rate this week.

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