Today is a relatively quiet day for the markets with no UK data releases today, markets will be focused on developments in the euro area and the US.
Later this afternoon ECB president Mario Draghi speaks in Brussels. Investors are speculating that Draghi is running out of options to revive the stalled recovery as confidence wanes and governments drag their feet on structural reforms. His appearance at the European Parliament could offer a glimpse into his thinking on current stimulus, and whether he’ll step up to large scale quantitative easing.
The pound strengthened before Bank of England governor Carney speaks this week as attention returns to the economic outlook after Scotland voted to stay in the UK. The U.K. currency gained versus all of 31 major counterparts as futures signalled rising prospects the Bank of England will increase borrowing costs next year.
New Zealand’s dollar rose against developed-market peers after Prime Minister John Key won a record election victory on the weekend.
In the US later today existing home sales have steadily recovered reaching 5.15m in July. August figures are likely to point to a further increase in transactions.
MORNING MARKET RATES:
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