What are the main events for today?

The main events today have been the RBNZ policy decision and the UK CPI report. The RBNZ cut interest rates by 50 bps as expected but Governor Orr sounded less dovish than expected saying that the 3.75% was the high end of the range of neutral rates while previously he said it was 3.50%.

The UK Core CPI, on the other hand, came in line with expectations while the Services CPI Y/Y measure missed slightly coming in at 5.0% vs. 5.1% expected.

Looking ahead, we have the US housing data (Housing Starts and Building Permits) in the American session and then the FOMC Meeting Minutes late in the day. These shouldn’t be market moving releases as the housing data is not in market’s focus right now and the FOMC Minutes are three-weeks old data.

Central bank speakers:

• 19:10 GMT/14:10 ET – RBNZ’s Orr (neutral – voter)
• 22:00 GMT/17:00 ET – Fed’s Jefferson (neutral – voter)

This article was written by Giuseppe Dellamotta at www.forexlive.com.