All Eyes on eurozone PMI’s and Bank of Canada

Investors attention moves away from politics today and onto economic data releases.

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
GBP/EUR 1.1310 1.1463 1.1112 2.19%
GBP/USD 1.2954 1.3257 1.2922 2.53%
EUR/USD 1.1453 1.1620 1.1436 1.58%
GBP/AUD 1.8250 1.8735 1.8011 3.86%
GBP/NZD 1.9756 2.0481 1.9641 4.10%
GBP/CAD 1.6947 1.7286 1.6598 3.98%

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

Time Currency Release Consensus Previous
9:00am EUR Flash Services PMI
3:00pm CAD BoC Monetary policy Report
3:00pm CAD BoC interest rate decision & statement