BoE and FOMC Minutes

The Australian and the Kiwi dollars remain at the forefront notching rallies of 1.82% and 2.43% respectively. The gains in the commodity risk currencies comes against the backdrop of a weaker US dollar and reduced inflows to safe haven currencies. The Swiss Franc and the Japanese Yen have remained weak despite the relative security of these currencies with commodities beginning to show signs of recovering off the lows from last week. Crude oil prices retreated from highs, giving back some of the gains after yesterday's crude oil inventory figure showed a larger than anticipated build to stockpiles. WTI crude oil lost -1.84% yesterday after prices briefly touched the multi-month highs of $49.67. The recent rally in gold futures also showed signs of stalling, with prices pulling back towards support levels, after falling back below the $1150 handle and trending just above support at $1142.

The Bank of England convenes today for its monetary policy meeting. No changes are expected as the UK bank rate remains at 0.50%. Focus will be on the MPC member's votes which currently has one dissenter in favor of rate hikes against 8 maintaining a neutral stance. Inflation in the UK showed signs of a pickup, but is largely expected to stay subdued for the most part of this year. More recently, economic data released from the UK showed a slowdown in the GDP growth in the third quarter with the fourth quarter GDP also expected to be low, off the highs of 0.70% growth seen in the second quarter. Yesterday's industrial and manufacturing production managed to provide a boost for the British Pound which hit the weekly high above 1.5300. Should a vote shift from the hawkish camp back to the dove camp, the British Pound could come under renewed pressure.