Brexit in Focus Again as Talks Resume Later This Week

The dollar fluctuated and the CAD gained on Friday's employment releases. Key for the pound this week are resumed Brexit talks and production data.

Previous Day's Market Highlights

The October US jobs report was mixed. Nonfarm Payrolls came in at 261K, under forecast, whilst September’s figure was revised up from -33K to 18K. The Unemployment Rate fell to 4.1%. Wage growth was flat month on month and slowed to 2.4% from 2.8% year on year.
 
This saw the dollar fluctuate as markets digested the report, although the greenback later regained ground on an above-forecast ISM Non-Manufacturing PMI print. Euro-dollardipped briefly below 1.1600.
 
Despite a wider trade deficit than had been projected, the Canadian dollar rallied on Friday on a strong Employment Change release at 35.3K.
 
The pound had gained last week heading into Thursday’s BoE meeting on rate hike expectations but fell off following what was seen as a dovish hike despite signalling of possibly two hikes later this year.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.1264 1.1451 1.1069 3.34%
GBP / USD 1.3079 1.3339 1.3039 2.25%
EUR / USD 1.1610 1.1880 1.1574 2.58%
GBP/AUD 1.7094 1.7368 1.6675 3.99%
GBP / NZD 1.8994 1.9433 1.8367 5.49%
GBP / CAD 1.6689 1.7171 1.6362 4.71%

Today's Market Highlights

Releases today include the Eurozone’s Producer Price Index (10:00 GMT) and Canada’s Ivey Purchasing Managers Index (15:00 GMT). The Fed’s Dudley speaks later in the day on lessons from the financial crisis (17:00 GMT). As part of his visit to Asia, President Trump is in Japan today, South Korea on Tuesday, and China on Wednesday.
 
The Reserve Bank of Australia announces its latest interest rate decision tomorrow morning and is expected to keep rates on hold at 1.5%. Signs that it may continue to hold steady whilst other banks look towards raising rates could weigh on the Aussie. The RBNZannounces its policy decisions on Wednesday.
 
The main UK data of the week comes on Friday, with manufacturing and industrialproduction largely forecast to slow. EU and UK officials meet in Brussels on Thursday for the next round of Brexit talks.

Today's Economic Calendar

Time Currency Release Consensus Previous
10:00 EUR Producer Price Index YoY (Sep) 2.8% 2.5%
EUR Eurogroup Meetings
15:00 CAD Ivey Purchasing Managers Index s.a. (Oct) 60.2 59.6
17:00 USD Fed's Dudley Speaks
03:30 AUD RBA Interest Rate Decision 1.5% 1.5%
03:30 AUD RBA Rate Statement