Pound Marches On...
The Pound has continued its good run across the markets, pushing higher against the Euro and the USD after a pronounced period of weakness. The move can largely be attributed to some relief in Brexit fears with the remain campaign having a good week of momentum. However, we still have just under two months to go and the pendulum could easily swing back the other way (no pressure on England in the Euro's!!). For now, it is some welcome relief for the pound after a sustained period of selling pressure.
Focus on the US interest rates
Today the main focus is on the US interest rate meeting (FOMC). The FOMC are not likely to move on interest rates and there will be no press conference or forward looking projections. There will be a statement released and the market will be looking for clues on the timing for the next interest rate move and whether June is potentially still on the cards. The FOMC chair Janet Yellen has been dovish in recent speeches and data has been inconsistent.
In other data today we have money supply and bank lending from the Eurozone which will be notable to gauge the impact of aggressive easing policies by the European Central Bank (ECB).
A weaker Australian Dollar
From Australia we have seen weaker data leading the AUD lower as the market sets its sights on a further rate cut from the Reserve Bank of Australia in the next 3 months. Tonight we have the Reserve Bank of New Zealand meeting and whilst no change is expected a rate cut is likely in the coming months which could weigh on the NZD.