The Euro weakens across the board as Trichet indicates the ECB won't be adjusting their interest rates in May
Sterling rallied against the majors yesterday with the release of UK House Prices rising for the eighth month in ten in March as the property market continues to show growth in the first quarter. As expected, the Bank of England kept UK interests rates at 4.50% and the ECB also revealed that their current monetary policy would remain at 2.50% in April. However, in the following press conference the ECB chairman, Jean-Claude Trichet, stated that there was a 'high probability' that interest rates won't be moved in May, which came as a surprise to the market and therefore the euro weakened across the board, closing last night above 1.4300 against Sterling.
The Dollar has come under pressure this week and we can expect further movement today with U.S. retailers expected to show the worst sales gains in over a year for the month of March but without doubt the most significant data released in the States today will be Nonfarm payrolls at 13:30 with many analysts expecting to see further growth in the U.S labour market. This figure has become increasingly significant in recent months, focusing on unemployment and average hourly earnings in the States and with forecasters predicting an improvement in March we could see the best first quarter of hiring in 6 years.
Data Released 7th April
U.S 13:30 NonFarm Payrolls (March)
- Unemployment
- Average Hourly Earnings
U.S 15:00 Wholesale Inventories (Feb)
U.S 20:00 Consumer Credit (Feb)
written by Adam Solomon
Posted at: 09:45
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