After a slight reprieve through most of the Asian session, commodity markets are once again on the defensive following through yesterdays sharp losses to see European stocks opening lower. Despite yesterday;s mixed closed for Europe we did see a sharp sell-off among US equities translating to weakness in Asia with little of the releases thus far encouraging. From Australia jobs numbers were a dissapointment as April Employment figures came out at -22.1K against a 17.0K consensus forecast though the unemployment rate remained steady at 4.9%. Going forward key release for the session will be the UK’s Manufacturing and Industrial Production numbers for March the consensus forecasts at 0.3% and 0.9% respectively month-on-month. Note Cable at this point should retain a modicum of support from the idea of possible tightening following yesterday’s talk from BoE Gov Mervin King with the release of the BoE’s latest Inflation Report. That said UK equities have taken a battering and looks set to see some more in today’s session which would likely see the British Pound on the defensive.
©2011 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.