The pound gained against the dollar during the overnight trade after UK house prices increased in February. Rightmove reported a 4.1% hike in asking prices on monthly basis, the largest increase since 2002, citing rising seller confidence owing to lack of homes for sale in more affluent areas. There are no major economic releases or policy speeches scheduled for today. Looking to the week ahead, Bank of England Minutes release headline the economic calendar, with the expectations for the MPC to have voted unanimously (9-0) again to keep Bank Rater unchanged at 0.5% and to have voted 8-1 to increase quantitative easing (QE) program by 50 billion pounds to 325 billion. Market participants are going to pay close attention to see if any members voted for a larger extension of a QE, indicating that more QE can come later in the year.
The euro is higher against the dollar this morning on speculation European finance ministers will come to a common solution over a Greek bailout package. Eurozone finance ministers are set to meet in Brussels today to seek an agreement on a 130 billion euro bailout for Greece. This would be second aid package for Greece in two years, and it is aimed to reconcile demands made on Greek politicians, a debt swap among private creditors and the role of the ECB. Looking to the week ahead, manufacturing and service sector figures headline the economic calendar this week, as they will give us a closer look on Eurozone growth prospects.
The dollar consolidated across the board during the Asian session as investors believe that EU finance ministers will come up with a solution for Greece debt crisis at today’s meeting. The afternoon trade session is expected to be uneventful as US markets are being closed due to the Presidents’ Day bank holiday. Looking to the week ahead, housing data will headline the economic calendar, with the focus on any additional indications of a pick up after last week’s encouraging housing starts data for January. Expect for the dollar to remain in current ranges should wee see the housing data coming out in line with expectations.
Comments