Tomorrow is a day full of economic announcements. Among the most relevant are the various announcements by three Central Banks regarding their interest rates. During the day the Bank of England, the European Central Bank and the Bank of Canada have scheduled announcements. Although none of the Central Banks is expected to report a change in t heir interest rate, their following comments will be telling on how they view the current economic climate.
7:00 am Official UK Bank Rate
The Pound has depreciated to six week lows after the equity rally appears to have stopped as fundamental concerns about the UK economy are raised. Some of the same symptoms that are present in the US such as signs of a returning consumer confidence could not keep the upwards trend versus increasing unemployment and ailing housing market.
7:45 am ECB Minimum Bid Rate
Central Banks are not exempt of labor trouble as ECB workers are on their first ever strike as Jean-Claude Trichet is set to announce the European Interest Rates tomorrow. The European Central Bank is not expected to change its 1.00% benchmark rate. Mixed economic data was released today. European GDP numbers showed that the Eurozone shrank by 2.5% in the first quarter off the year and on a more positive note EU Consumer Confidence in the Service sector has increased to 59.1 up from 54.4 in April.
9:000 am Bank of Canada Rate Statement
After touching eight month highs, the CAD fell as investors turned once again to the USD as the safe haven in uncertain times. Commodities also tumbled which was one of the reasons the loonie had done so well in past sessions. The Canadian economy is forecasted to shrink almost 3% this year and with the benchmark interest rate already at 0.25%, quantitative easing is the most likely choice for the Bank of Canada as unemployment is reported this Friday.
Fore more European, Canadian and International interest rate data check FXEconostats
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