The Financial Fixed Odds update from David Evans, Market Analyst, BetOnMarkets.

 
After a strong day for the Pound and Euro yesterday, today’s central bank statements could either make or break the nascent recovery.

At 12.00 GMT we have the latest interest rate statement from the Bank of England’s MPC.

Rates are unanimously expected to be kept on hold at 0.5%, but that’s only part of the story.

Firstly, the actions surrounding the asset purchase facility may be of more importance than the interest rate decision as it is this part which is less of a sure thing.

Analysts expect the Bank of England to keep the amount of quantitative the same, but after the Pounds recent collapse, there is an outside chance of this changing.

Traders will listen to every word and nuance of the accompanying statement from governor King for clues as to future policy decisions.

A bullish tone could see the Pound shoot higher, while negative sentiments or at least an interpretation of negativity could see a fresh sell off in the Pound.

The European Central Bank have their own rate decisions and statement at 12.45. However, although they have not been engaging in quantitative easing, the Eurozone is not without its problems; Greece and the other so called ‘peripherals’ are still weighing heavily on the Euro.

With so much at stake, today’s rate statements are the most important that the ECB and MPC have faced in months.

The GBP/USD, GBP/JPY, EUR/USD, EUR/JPY and EUR/GBP will be the currencies to watch.

As if the day wasn’t busy enough, we also have UK Halifax house price index at 09.00, Canadian building permits at 13.30, US unemployment claims at 13.00, Canadian PMI data at 15.00 and US pending home sales at 15.00.

It’s relatively quiet out there so far with the notable exception is the antipodean currencies of the Australian and New Zealand Dollar.

The NZD/USD is down 0.62% with the Australian Dollar not faring much better. Things could change pretty quickly once the economic data starts rolling in.

A busy day!

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