Previous Day's Market Highlights
The pound briefly softened around the release of mixed production and trade data and flat growth in August (although the rolling three-month rate was unchanged at 0.7%). However, it otherwise remained supported by more positive Brexit sentiment following recent headlines indicating progress on a deal. This kept sterling-euro above 1.14, hitting fresh highs since June, and allowed sterling-dollar to break 1.32 to hit its highest levels since 21 September.
US equity markets fell the most in eight months as tech shares declined. US ten-year yields fell as investors turned to less risky assets. Earlier PPI data was in line with expectations, supporting Fed rate hike expectations.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
Markets will keep an eye on today’s speeches for any monetary policy insights. BoE Governor Carney will participate in a panel discussion on “Scaling Up Green Finance—The New Role of Regulators and Central Banks” (10:00 BST). MPC Member Vlieghe is speaking on “Global and Domestic Challenges for UK Monetary Policy”, which may have more of a market impact (11:45).
Overall, Brexit headlines will remain the key driver for the pound; in particular, markets will be watching to see whether the latest round of positive Brexit headlines can be sustained. A pick-up in core US CPI could outweigh a softer headline figure and generally support the dollar and rate hike expectations.
Today's Economic Calendar
|9:30am||GBP||BoE Credit Conditions Survey|
|10:00am||GBP||BoE Governor Carney Speaks|
|11:45am||GBP||MPC Member Vlieghe Speaks|
|12:30pm||EUR||ECB Meeting Accounts|
|1:30pm||USD||Initial Jobless Claims||206K||207K|
|1:30pm||USD||CPI YoY (Sep)||2.4%||2.7%|
|1:30pm||USD||Core CPI YoY (Sep)||2.3%||2.2%|
|1:30pm||CAD||New Housing Price Index YoY (Aug)||0.5%||0.5%|
|4:00pm||USD||EIA Crude Oil Inventories (5 Oct)||2.647M||7.975M|
|1:30am||AUD||Financial Stability Review|
|1:30am||AUD||Home Loans (Aug)||0.1%||0.4%|
|1:30am||AUD||Investment Lending for Home Loans (Aug)||-1.3%|