Bank of England’s 20th Anniversary

A speech from US President Donald Trump yesterday evening provided much needed clarity on his proposed fiscal stimulus programme including an insight into his long-awaited tax reform policies. Despite the new-found clarity, there was minimal impact to the USD. The muted reaction can be partially explained by the fact USD had already strengthened by up to 1.5% this week in anticipation of the speech.

Previous Day's Market Highlights

A speech from US President Donald Trump yesterday evening provided much needed clarity on his proposed fiscal stimulus programme including an insight into his long-awaited tax reform policies. Despite the new-found clarity, there was minimal impact to the USD. The muted reaction can be partially explained by the fact USD had already strengthened by up to 1.5% this week in anticipation of the speech.

The euro continued its decline following the results of Sundays German election as the market awaits news on how Chancellor Angela Merkel will form a coalition with junior parties. The uncertainty surrounding this poses further risk that may undermine the euro until Germany has a working government in place. 

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.1404 1.1417 1.0745 5.89%
GBP / USD 1.3391 1.3664 1.2777 6.49%
EUR / USD 1.1749 1.2093 1.1773 2.65%
GBP/AUD 1.7068 1.7050 1.6165 5.19%
GBP / NZD 1.8640 1.8742 1.7684 5.65%
GBP / CAD 1.6727 1.6728 1.5837 5.33%

Today's Market Highlights

The main kick off for today will be at 9:15am with Bank of England Governor Mark Carney delivering opening remarks at the Bank of England’s 20 year anniversary of operational independence over monetary policy. We are likely to see market volatility around this time if any comments are made regarding future monetary policy. PM Theresa May and FOMC Member Stanley Fischer also speak at the same event.

Prior to this, we’ve already had Spanish Flash CPI data come out as forecast at 1.8%.

In the afternoon session, we see US quarterly final GDP data at 1:30pm which is a strong indicator of economic health in the US. This is forecasted at 3.0%; it is interesting to note that the last 6 consecutive data releases for final GDP data in the US have all come out greater than forecasted.

At the same time, The US will also release unemployment claims data, which is forecasted at 269K, which is slightly above the previous release of 259K.

Today's Economic Calendar

Time Currency Release Consensus Previous
08:30 SEK Retail Sales 2.8% 3.7%
09:15 GBP BOE’s Governor Mark Carney speech
n/a GBP UK Prime Minister Theresa May speech
10:00 EUR Eurozone Consumer Confidence 14.9 14.9
13:30 EUR GER Consumer Price Index YoY 1.8% 1.8%
13:30 USD Unemployment Claims WoW 270K 259K
13:30 USD Gross Domestic Product - Final 3% 1.4%