Upbeat expectations is dominating the financial markets today, as yesterday's data eliminated fears of recession in the world's largest economy, better than expected productivity and strong labor market made investors believe so, as majors dropped heavily against the U.S Dollar, while today we have the rate decisions from both the BoE and the ECB, expectations to see steady rates from both considering the current developments in the financial markets especially the credit markets.
The Euro dropped heavily breaching the 1.46$ to the downside recording a high of 1.4626 and a low of 1.4572, today the ECB is expected to hold their rates steady at 4.00%.
The British Pound dropped even more, as investors believe the U.K economy is slowing down highlighted by what seems to be yet another housing slump after we saw what housing market did to the world's largest economy, this increased expectations the BoE will cut their benchmark interest rates by a quarter basis points, but the majority in the financial markets expect steady rates.
The U.S Dollar inclined against the Japanese Yen supported by those optimistic expectations driving the pair to the 111 levels again, the USD/JPY recorded a high of 111.17 and a low of 110.70.
The Reserve Bank of New Zealand released their decision regarding their benchmark interest rates, keeping rates unchanged at 8.25% as it was expected in the financial markets.
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