BOE rate decision out tonight!

Currencies were mainly range-bound versus the dollar yesterday due to an absence of major US data releases and Fed speakers.

USDJPY continues to remain in a narrow range with a strong resistance at 83.50. Reuters reported Japan government officials are concerned about how oil price hikes; political developments will impact the economy.

Euro was range-bound as well due to a lack of news. 1.3860 remains as a strong support. Even though there seems to be a bullish sentiment over ECB’s possible rate hike next month, concerns over sovereign risk seems to be capping the Euro on the upside. We just saw Moody’s downgrade Spain rating to AA2.

The Aussie employment figures came out a lot weaker than consensus this morning which pulled the Aussie 30 points lower.  China’s trade balance figures pushed the Aussie even lower towards 1.0015 levels, as the numbers came out negative.

There’s quite a lot of data out tonight, specifically the BOE rate decision, where we could see some cable movement tonight.

Data Today

UK Industrial Output – 9.30am GMT

UK Manufacturing Output – 9.30am GMT

German trade balance – 7am GMT

Bank of England Rate Decision – 12pm GMT

US initial jobless claims – 1.30pm GMT

US trade balance – 1.30pm GMT

Happy Trading!

FxTaurian