Themes

• General mood is “risk on”
• BoE raises U.K. interest rates from 0.1% to 0.25%
• ECB leaves European interest rates unchanged

What’s Moving

There was a strong risk on move in European trade overnight, before the upside on commodity currencies petered out into the U.S. open. New York trade provided very little in the way of incentives and currencies largely traded within European session ranges.

Gold and oil prices rose in U.S. trading, which helped provide a floor under the commodity currencies.

The Bank of England raised rates overnight from 0.10% to 0.25% which saw a good bid enter the market on Sterling. The ECB left European rates unchanged as was expected.

Thoughts

We are expecting a quiet end to the week on currencies today amid wide swinging trade overnight and with the Friday effect expected to remove local player interest.

The BoJ will announce on Japanese interest rates today, with no change expected. There is little in the way of data in Asia today.

Pivot Points