The GBPUSD started the day how it ended yesterday: higher. Speculators were still felling bullish after the stronger UK inflation figures had raised the prospects that the Bank of England may turn hawkish.
Crude oil was unable to hold onto its gains on Monday after appearing for a while to have ended its bearish run. Oil prices have fallen for three consecutive weeks after the OPEC and Russia failed to surprise the markets with their decision to extend the oil production deal.
Today’s going to be a quieter session in terms of economic news, ahead of key events later this week. There are however at least three factors that need to be watched closely.
The Australian dollar gapped lower at the open on Friday, and continued to grind sideways after that.
The EURUSD pair had a very volatile session on Wednesday, as we are trying to front run the European Union quantitative easing situation.
The Australian dollar exploded to the upside on Wednesday, using the 0.75 level as support.
Thanks to soft US economic data of late, expectations about an aggressive rate hiking cycle by the Fed has diminished.
The Australian dollar gapped lower at the open on Monday, but then fill that gap as one would expect.
It is going to be a big week for the markets this one, especially towards the end of it. Among other things, we will have the UK’s general elections, the ECB’s latest policy decision and former FBI Director James Comey’s testimony all to look forward to on Thursday.
China’s central bank injected 30 billion yuan (4.76 billion U.S. dollars) into the financial system via open market operations on Monday to maintain stable liquidity.
