Previous Day's Market Highlights
Yesterday saw another weak UK PMI figure for September, this time construction, putting pressure on sterling. The index fell to 48.1 (forecast was 50.8), suggesting the sector declined at the end of Q3. Construction has struggled since last year’s Brexit referendum outcome.
We saw GBP/EUR move down below 1.13. Likewise, EUR/USD moved above the mid-point of the 1.17-1.18 range. Meanwhile, GBP/USD was little changed on the day. It opens this morning close to 1.3280.
In the day ahead, the main release today is UK services PMI for September. While it is not expected to show any change from August, downside misses by other UK PMI indices earlier in the week mean a similar result today cannot be ruled out. This could put further pressure on sterling.
Investors are also looking ahead to Friday’s key US employment report for September.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.1317||1.1417||1.0836||4.43%|
|GBP / USD||1.3268||1.3664||1.2916||2.65%|
|EUR / USD||1.1735||1.2093||1.1718||0.14%|
|GBP / NZD||1.8545||1.8742||1.7916||3.51%|
|GBP / CAD||1.6612||1.6728||1.5837||5.33%|
Today's Market Highlights
Today’s busy economic calendar begins with a plethora of Services PMI figures from around the Eurozone. Figures for Spain, Italy, France and Germany are released from 8:15 onwards however the main focus is likely to be on the overall EU figure, released at 9:00AM, forecast to show continued expansion with a reading of 55.6.
Sterling traders will be focusing on the release of UK Services PMI at 9:30AM. Expansion is forecast with a print of 53.2 however a figure lower than this, or a reading showing contraction in the industry, will likely see a further sell off of the pound and see August’s gains all but erased.
The US session sees the release of ADP Non-Farm employment change for September at 1:15PM, forecast at 131k, as well as the release of US Services and Non-Manufacturing PMI figures at 2:45PM and 3:00PM respectively - expansion is forecast in both sectors. The afternoon session is rounded off with speeches from both ECB President Draghi and Fed chair Yellen. Markets will be watching closely for any hints towards future monetary policy direction, or an unwinding of the QE programme in the Eurozone.
Today's Economic Calendar
|08:00||EUR||Non-monetary policy’s ECB meeting|
|09:00||EUR||Market Services PMI (Sep)||55.8||55.6|
|10:00||EUR||Retail Sales (YoY)||2.6%||2.6%|
|13:15||USD||ADP Employment Change (Sep)||125K||237K|
|14:45||USD||Market Services PMI (Sep)||55.1||55.1|
|18:15||EUR||ECB President Draghi’s Speech|
|20:15||USD||Fed’s Yellen Speech|