mask Can Carney Save the Pound?

12/ 04/ 2017

Can Carney Save the Pound?

Daily Update - 12th April 2017

Yesterday’s Market

  • EUR Industrial Production & ZEW Survey – Economic Sentiment & Current Situation
  • GBP Consumer Price Index, Producer Price Index & PPI Core Output

Yesterday Explained

German ZEW investor confidence jumps to 19.5 in April, from 12.8 in March. The stronger than expected reading lifted the 3 months’ trend rate for the first time since January and with the current conditions indicator also improving the data suggests that the German recovery remains on track.

From UK, Sterling was volatile on Tuesday, with prices oscillating between losses and gains after markets digested the UK’s steady 2.3% inflation figure for March, which was the highest level since September 2013. Consumer prices gained 0.4% inter-month, surpassing estimates.

Today’s Market

  • EUR Germany Wholesale Price Index
  • GBP BOE Governor Carney Speech, Claimant Count Change  & ILO Unemployment Change
  • CAD BOC Interest rate decision, Rate Statement, Monetary Policy Report & BAC Press Conference

The main focus remains on the UK employment data due to be released short after the BOE Governor Mark Carney scheduled speech, while the second-tier data in the German WPI will be reported ahead of the EU open. Markets will keep a close eye on Mark Carney for commentary and guidance on future monetary policy with Wage Growth and Average Earnings data providing macroeconomic direction in UK.

The BOC interest rate decision along with Rate statement, Monetary policy will take center-stage in the evening session, in absence of key economic data from the USA.