Pound dropped ahead of Carney speech

Daily update

Yesterday’s markets

• Germany Ifo Business Climate
• US CB Consumer Confidence
• UK Central Bank Governor Mark Carney Speaks
• European Central Bank Governor Mario Draghi Speaks

Yesterday explained

The pound sterling's sudden drop came yesterday ahead of BoE governor Mark Carney's speech in which he faced questions over whether another rate cut would be necessary. The U.S. dollar also moved higher, however, supported by a 0.7 percent rise in August's house prices. Also Draghi said in a speech in Berlin on Tuesday that low rates are a symptom of underlying weak investment and excess savings, which central banks must take into account. He said low rates support consumption and jobs — benefits that are "always socially progressive.

Today’s market

• Australia Consumer Price Index
• US Crude Oil Inventories

Today’s focus

The Consumer Price Index will be released by the RBA and republished by the Australian Bureau of Statistics is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. Also we will see US Crude Oil Inventories report.   U.S. crude oil stocks dropped by as much as 5.2 million barrels to 468.7 million in the previous reporting period contrary to analyst’s expectation that the stocks would increase by 2.2 million barrels. The annual gain declined to 2.1 percent and the total supply of petroleum products over the last four weeks rose modestly to 20.1 million barrels per day on average.