will be published at 18:00 GMT, and traders will see the oil reserve data from the American Petroleum Institute at 20:30 GMT. With just a few hours to go, suddenly the FOMC Minutes become even more important as the EU Producer Price Index tumbled into deflation and puts the latest hawkish comments from European Central Bank president Christine Lagarde on loose screws.
US Factory Orders, set to come out at 14:00 GMT, are expected to jump from 0.4% previous to 0.8% in May. China’s June Caixin Services and Composite Purchase Manager Index declined compared with the previous month, triggering a sell-off in Chinese equities and a weaker Yuan. The benchmark 10-year US Treasury bond yield halted trading at 3.84% on Wednesday after being closed throughout Tuesday. No clear sense of direction to take away around halfway through the European session. The US Dollar is painting a whole other picture compared to its performance on Tuesday, when it weakened against most major currencies. On Wednesday, nearly every segment is in the green with Canadian Dollar and Indian Rupee both at a month-high level.
If inflation falls below target the central bank may cut base lending rates, with a view to stimulating lending and boosting the economy. If inflation rises substantially above 2% it normally results in the central bank raising base lending rates in an attempt to lower inflation.Higher interest rates generally help strengthen a country’s currency as they make it a more attractive place for global investors to park their money.