This morning speaking at the ECB Forum on Banking Supervision in Frankfurt, Draghi urged European policy makers to complete the integration of the region’s banking sector. His comments resulted in a GBPEUR pushing higher as we speak to the point where a asset purchase programe is to be discussed at ECB's December meeting.
Shortly after we had USD trade balance for September which was expected at 41 billion compared with the previous 48.3 billion which was larger than expected. It came in better than expected at 40.8b as was mentioned this morning by the Federal Reserve members.
This afternoon we have ISM Non-Manufacturing and Markit’s Services PMI both ahead of the key event for USD today.Yellen’s is due at 3 to testify on the economic outlook and recent monetary policy actions before the Joint Economic Committee, in Washington DC.
All eyes turn to the Bank of England inflation report that is released tomorrow morning. This gives us the BoE’s current assessment of the UK economy and the outlook for the coming months. Mark Carney has been trying to quell interest rate speculation with recent comments, so I would be surprised if the inflation report pushes sterling higher.