Previous Day's Market Highlights
UK inflation unexpectedly held steady at 3.0% in January; economists had forecast that CPI would fall to 2.9%. As signs of rising inflation puts pressure on the BoE to raise interest rates and inflation has been above the 2.0% target rate since last February, the pound rallied around the release. However, it reversed gains later in the session.
Sterling-dollar temporarily reclaimed 1.39, while sterling-euro continued to trade in the 1.12-1.13 range and euro-dollar rallied further above 1.23 on a softer dollar.
Fed Member Mester said yesterday that she favours a similarly gradual pace as that seen in 2017, when the Fed raised rates three times.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
Today marks a busier calendar day. The second estimate of the Eurozone’s Q4 GDPcomes out this morning (10:00 GMT), and the euro could strengthen on any upwards revisions. A strengthening economy has been one of the factors supporting the argument that the ECB should make monetary policy less accommodative. December Industrial Production will also be released.
In the afternoon, attention turns to the US for January Retail Sales and CPI figures (13:30 GMT). Slower Sales and inflation signals could weaken the dollar this afternoon. The implications for monetary policy will be particularly closely watched in light of recent bond and stock market volatility.
While there are no major UK releases today, markets will keep an eye on comments from Foreign Secretary Boris Johnson. Brexit uncertainty and domestic political discord have been pressures on the pound and continue to pose a risk.
Overnight, Australia is to release January jobs data. The Unemployment Rate is forecast to fall to 5.3% from 5.5%, which could strengthen the Aussie. However, the greater risk may be to the downside should market expectations be disappointed.
Today's Economic Calendar
|10:00||EUR||GDP s.a. QoQ (Q4)||0.6%||0.6%|
|10:00||EUR||GDP s.a. YoY (Q4)||2.7%||2.7%|
|10:00||EUR||Industrial Production w.d.a. YoY (Dec)||4.2%||3.2%|
|10:20||EUR||ECB's Mersch Speaks|
|12:45||EUR||ECB's Mersch Speaks|
|13:30||USD||CPI YoY (Jan)||1.9%||2.1%|
|13:30||USD||Core CPI YoY (Jan)||1.7%||1.8%|
|13:30||USD||Retail Sales MoM (Jan)||0.2%||0.4%|
|13:30||USD||Core Retail Sales MoM (Jan)||0.4%||0.4%|
|15:30||USD||EIA Crude Oil Inventories (9 Feb)||2.600M||1.895M|
|00:00||AUD||Consumer Inflation Expectations (Feb)||3.7%|
|01:30||AUD||Unemployment Rate s.a. (Jan)||5.3%||5.5%|
|01:30||AUD||Employment Change s.a. (Jan)||25.5K||34.7K|