Previous Day's Market Highlights
Sterling started yesterday on the front foot, climbing 0.5% against the major G10 currencies. This move related to headline news that the EU are willing to offer the UK a wide customs arrangement, hinting that the two sides were beginning to resolve their differences. GBP/EUR peaked at 1.1370 against the euro, whilst cable reached a high for the day at 1.3045. However, this news quickly faded, and so did the pound’s gains, retreating back to the levels seen earlier that morning.
EUR/USD steadied on Tuesday, after starting the week with considerable losses. The single currency gained momentum following German inflation data registering its highest level since May.
However, with little data on the agenda, Tuesday remained fairly uneventful with both BoE members Carney and Haldane along with FOMC member Bostic failing to inspire the market during their respective speeches.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
Wednesday’s agenda turns investors attention away from the politics and onto the economic data releases. The composite eurozone manufacturing and services PMI data at 09:00 are set to show further deterioration in economic momentum. The manufacturing figure is forecast to decline further in October, falling to 53.0 from 53.2, which would be a two-year low if confirmed. The services figure is also forecasting a dip from 54.7 to 54.4, also offering no support for the euro unless we see an unexpected result above the forecasted level.
This afternoon, the Bank of Canada is in focus with the interest rate decision and accompanying statement. Having increased rates four times since 2017, the BoC is expected to raise the overnight rate by another 25 basis points to 1.75%. Where this hike seem all but a done deal and therefore priced into the value of the Loonie, we could see some support for the currency should the BoC deliver a hawkish statement.
Today's Economic Calendar
|9:00am||EUR||Flash Services PMI|
|3:00pm||CAD||BoC Monetary policy Report|
|3:00pm||CAD||BoC interest rate decision & statement|