Big day in the forex market: G20 summit leaks and statements, and the ECB rate decision will dominate the day. And there’s more…
G20 summit talks are now in progress in London. Will the leaders act together? Will they decide on a huge spending plan? What about regulation? All the official and unofficial news from the summit will shake the forex markets.
Australian Trade Balance was better than expected, showing a surplus of 2.11B, 3 times the early expectations of 0.7B. AUD/USD now trades 0.7032, higher! I’ll write more on the Aussie later.
In Britain, Nationwide HPI rose by 0.9%. This is a huge positive surprise: expectations were for a fall of 1.5%. Has the British housing market also bottomed? American Housing already did. GBP/USD leaped to 1.46 after this news.
More in Britain: BOE Credit Conditions Survey is released soon, as also the Construction PMI, expected to be almost unchanged, at 27.6.
In Switzerland, SNB Governing Board Vice-Chairman Philip Hildebrand will speak about the financial crisis. IT will be interesting to hear what this SNB member will say, after the intervention in the markets.
At 11:45 GMT, the new Minimum Bid Rate is published in Europe: Jean-Claude Trichet and co are expected to lower the rates to 1%, a 0.5% cut. The more interesting part of this event is the ECB Press Conference. Will Trichet speak about Quantitative Easing? Will also Europe join the forex war?
At the same time, the weekly Unemployment Claims are published in the US. Expectations are for stability: 649K compared to 652K last week. This figure will help for see the Non-Farm Payrolls tomorrow.
Also in the US, Factory Orders are expected to rise by 1.5% after falling by 1.9% last month.
Hold tight!
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