Today’s macroeconomic calendar is quite poor. In China, during this week is celebrated one of the most important holidays, commemorating the proclamation of the Republic of China in 1949. In practice this means 7 days off in a row. This is the longest period of rest in the Year of the Monkey.

One of the most important publications today was the decision to leave interest rates in Australia at the current level of 1.50% and a statement by Reserve Bank of Australia (RBA). Despite the lack of significant data coming from across the ocean in the morning we see strong appreciation of the US Dollar as a result of which currency pair GBPUSD beat local support @1.2819 and is on the lowest level since 1985.

The dollar index also gains in the morning (0.50%), as a result of which the market has already defeated the resistance of 95.96.

What is still ahead of us?

Soon we will get PMI in construction sector in UK. Expectations are at 49.0 level – a little worse than 49.2 before.

Then we will know decision about interest rates in India. Market expectation are saying that there will be no changes.

After noon FED member Lacker will have a speech.