Monetary Policy Decisions Put the GBP and the EUR Front and Center

Earlier in the Day:

It is a relatively quiet start to the Asian session on the economic calendar. The Aussie Dollar and the Japanese Yen are in action early this morning. From Australia, trade data for December will be in focus ahead of Japan’s finalized services PMI for January.

The Majors

At the time of writing, the Japanese Yen was up by 0.01% to  ¥114.450 against the U.S Dollar, while the Aussie Dollar was down by 0.04% to $0.7134. The Kiwi Dollar was flat at $0.6632.

The Day Ahead

For the EUR

It’s a busy day ahead on the economic calendar. January’s services PMI for Italy and Spain and finalized services and composite PMIs for France, Germany, and the Eurozone will be in focus. Barring any marked revisions to numbers for France and Germany, expect the Eurozone’s Composite to be key.

While the stats will influence, the ECB monetary policy decision and press conference will be the key drivers, however. The markets will be looking for any shift in the ECB’s stance on inflation and interest rates.

At the time of writing, the EUR was down by 0.01% to $1.1304.

For the Pound

It’s a big day ahead on the economic calendar. On the economic data front, January’s finalized services and composite PMIs will be in focus. Expect any revisions to the services PMI to be key. The main event of the week, however, will be the Bank of England’s monetary policy decision. With the markets pricing in a 25-basis point hike, it will be down to the Bank’s forward guidance on interest rates that will be key.

At the time of writing, the Pound was down by 0.01% to $1.3576.

Across the Pond

It’s a busier day on the economic calendar, with ISM Non-Manufacturing PMI and weekly jobless claims in focus. Expect both sets of numbers to influence.

On Wednesday, the U.S Dollar Spot Index fell by 0.41% to end the day at 95.986.

For the Loonie

It’s a particularly quiet day ahead. There are no material stats due out of Canada to provide the Loonie with direction. The lack of stats will leave market risk sentiment and crude oil prices to provide direction.

At the time of writing, the Loonie was down by 0.03% to C$1.2673 against the U.S Dollar.

For a look at all of today’s economic events, check out our economic calendar.