MARKET OVERVIEW AT OPEN
The six members of the European Central Bank (ECB) Executive Board and the 16 governors of the euro area central banks vote on where to set the rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation. Europe’s producer price index (PPI) has come in ahead of expectations at 0.2% month-on-month, down from its previous level of 0.4% but beating the market of 0.1%.
The Producer Price Index (PPI) measures the change in the price of goods sold by manufacturers. It is a leading indicator of consumer price inflation, which accounts for the majority of overall inflation.
EURJPY 123.76 +1.54%, EURAUD 1.2381 +1.02%, EURNZD 1.5360 +0.90%, EURUSD 1.2872 +0.78%, EURCAD 1.3048 +0.57%, EURGBP 0.8471 +0.26% and EURCHF 1.2163 +0.15%. The US initial jobless claims have posted a lower-than-expected level of 385k (exp. 350k), up from its previous level of 357k in February resulting in the USD pushing lower against the majority of its major counterparts.
Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.
EURUSD 1.2872 +0.78%, USDJPY 96.14 +0.77%, USDCHF 0.9450 -0.61%, GBPUSD 1.5192 +0.51%, AUDUSD 1.0394 -0.25%, USDCAD 1.0136 -0.21% and NZDUSD 0.8378 -0.13%.
The amount of quantitative easing from the Bank of England (BoE) has been held flat at 375bn in March. The release comes as the bank also held interest rates flat at 0.50% for a ninth consecutive month.
The Bank of England electronically creates new money and uses it to purchase gilts from private investors such as pension funds and insurance companies.
GBPJPY 146.07 +1.27%, GBPAUD 1.4614 +0.75%, GBPNZD 1.8129 +0.65%, GBPUSD 1.5192 +0.51%, GBPCAD 1.5400 +0.30%, EURGBP 0.8471 +0.26% and GBPCHF 1.4357 -0.11%.
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