Euro Breaks Key Resistance, Pound Soars on Carney

We're looking first at the rally in EUR/USD as its broken resistance. It stems from the Mario Draghi speech yesterday where the ECB president detailed his thoughts on where the Eurozone economy was at.

Tomorrow could be a big test as we have German inflation data which economists say could be at 1.4 percent for the year on year figure, this was at 2.2 percent in February.

On UK economic data out today showing house prices are resilient in the UK. The Nationwide Building Society says that UK house prices rose at an annual 3.1% through to the end of June. But as the UK expands London house price growth continues to shrink.

Meanwhile Philips and Nestle bring big buy-backs.

Philips first, the Dutch medical equipment maker, is to buy US listed Spectranetics for 1.9blln euros to accelerate its expansion into image guided therapy devices to treat cardiac and vascular disease. That’s 38 dollars 50 a share, a premium to yesterday’s closing price of just over 30 dollars. But it’s also entered into a 1.5bln share buyback programme.

So too has food giant Nestlé. It’s announced a buy-back programme worth up to SFr20bn ($21bn), just days after US activist investor Daniel Loeb took a stake in the company and called for a shake-up of "its old ways". A buyback will make it harder for activist investors to change things.

We also look ahead to Thursday with a yen trade off the back of Japan retail sales and that German inflation number could provide a trade around the euro.

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--- Written by Jeremy Naylor, DailyFX