Previous Day's Market Highlights
The pound picked up yesterday after Manufacturing PMI surprised to the upside ahead of Thursday’s BoE meeting. Sterling eked out a new high against the euro, rising to its highest levels since late June. Sterling-dollar pulled back from morning highs around 1.3300.
As expected, the Fed kept interest rates on hold last night and signalled that the door remains open for a December rate hike. US data were mixed yesterday: ADPEmployment Change came in above forecasts at 235K, whilst ISM Manufacturing PMIdisappointed.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.1392||1.1451||1.1069||3.34%|
|GBP / USD||1.3262||1.3339||1.3027||2.34%|
|EUR / USD||1.1641||1.1880||1.1574||2.58%|
|GBP / NZD||1.9164||1.9433||1.8367||5.49%|
|GBP / CAD||1.7021||1.7161||1.6350||4.73%|
Today's Market Highlights
Expectations are high today for a possible rate hike from the Bank of England, which announces its latest decisions this afternoon (12:00 GMT) during a “Super Thursday” meeting that also sees the release of its quarterly Inflation Report. A hike has been largely priced in but could still see an additional move higher in the pound as a knee-jerk reaction.
However, should the Bank hold steady, market expectations would be disappointed, which would see the pound weaken. Key also will be the vote breakdown, the Bank’s updated inflation projections, and any signals regarding potential future hikes. These elements will provide greater context around the Bank’s decision and clues to the future direction of monetary policy.
This morning’s Construction PMI (09:30 GMT) typically has the most limited market impact of the three PMI releases and will likely be overshadowed by the BoE. Also expected today is President Trump’s nomination of the next Fed chair. It is widely expected that he will choose the dovish Powell.
Overnight, a pick-up in Australian Retail Sales could offer the Aussie support.
Today's Economic Calendar
|09:30||GBP||Markit Construction PMI (Oct)||48.0||48.1|
|12:00||GBP||BoE Interest Rate Decision||0.50%||0.25%|
|12:00||GBP||Monetary Policy Summary|
|12:00||GBP||BoE Quarterly Inflation Report|
|12:00||GBP||BoE Meeting Minutes|
|12:30||GBP||BoE Governor Carney Speaks|
|12:30||USD||Initial Jobless Claims (27 Oct)||235K||233K|
|12:30||USD||Nonfarm Productivity (Q3)||2.4%||1.5%|
|16:20||USD||Fed's Dudley Speaks|
|00:30||AUD||Retail Sales s.a. MoM (Sep)||0.4%||-0.6%|