FX Update

Markets were a bit quite on Monday as we await the decision of FOMC, BOJ and RBNZ over the next couple of trading days. The USD is relatively stable across the board despite the weaker than expected new home sales figure released yesterday.as we approach the market today, there are a few economic data that will shape the direction of the market ahead of central banks meeting during the week. UK gdp data will be a very important data to watch today as market is expecting 0.6% lower than the previous quarter of 0.7%, likewise gdp (YoY) is expected to remain unchanged at 2.4%. A stronger than expected figure will see a strong rally on GBP across the market while a disappointing figure might see prices plunge to the downside. It is very important to check the revision for previous quarter because it has a strong impact on the market as well. A downward revision might also drive down prices why an upward revision might push prices up.

The US economy will release core durable goods data and CB consumer confidence figures later in the afternoon. Market is expecting durable goods figure at 0.1% which is lower than the previous month and 103.0 for consumer confidence respectively.

Oil prices have been on a massive sell-off over the past five trading days. This could be attributed to increase in stockpile which is more than 8 million barrels.