Central Bank Speeches in Focus

Central bank speeches are in focus today, particularly comments from ECB President Draghi after Thursday's announcements on QE and interest rates.

Previous Day's Market Highlights

Friday was a quieter calendar day after Thursday’s ECB announcement that asset purchases would indeed draw to a close at the end of this year, but that interest rates would stay on hold until at least next summer.
 
Of the day’s releases, final Eurozone CPI figures confirmed that both headline and core inflation accelerated in May, to 1.9% and 1.1%, respectively. US data were mixed as Industrial Production unexpectedly declined 0.1% and the Michigan Consumer Sentiment Index rose more than forecast to 99.3.
 
This combined with trade war concerns over a possible second round of US tariffs on China saw euro-dollar recover above 1.16 from morning lows around 1.1560. Those morning lows marked a drop of around three cents from Thursday’s highs, hit before attention shifted to the ECB’s announcement that interest rates would remain on hold in the near term. Sterling-dollar made gains back towards 1.33 while sterling-euro held within the 1.14-1.15 range.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.1443 1.1478 1.1302 1.53%
GBP/USD 1.3248 1.3619 1.3204 3.05%
EUR/USD 1.1574 1.1996 1.1510 4.05%
GBP/AUD 1.7796 1.8241 1.7518 3.96%
GBP/NZD 1.9085 1.9702 1.8928 3.93%
GBP/CAD 1.7459 1.7567 1.7055 2.91%

Today's Market Highlights

With a quiet schedule on the macroeconomic data front, attention today is largely on a raft of central bank speakers. ECB President Draghi will give the opening remarks at the ECB Forum on Central Banking (13:30 BST) and his comments will be in close focus after last week’s ECB meeting. If there is little new in his speech, the euro impact could be limited, while a focus on the time remaining until interest rates will rise could put pressure on the single currency.
 
Of the day’s several Fed speakers, Bostic is to speak on the economic outlook, while Williams is to give the closing remarks at a speech on banking culture. Williams takes over as the head of the New York Fed from today. Any additional trade developments will remain key for the dollar as well.
 
Overnight, the Aussie dollar will keep an eye on housing price data and the RBA meeting minutes.
 
Other highlights this week include Thursday’s Bank of England meeting, at which the BoE is expected to keep rates on hold, additional speeches from ECB President Draghi, New Zealand GDP, and Canadian CPI. Commodity currencies will react to any headlines from this week’s OPEC meeting, particularly in relation to the fate of current production limits. 

Today's Economic Calendar

Time Currency Release Consensus Previous
14:00 USD Fed's Duke Speaks
16:45 CAD BoC Deputy Gov Patterson Speaks
18:00 USD Fed Member Bostic Speaks
18:30 EUR ECB President Draghi Speaks
20:45 USD Fed member Williams Speaks
02:30 AUD House Price Index QoQ (Q1) -1% 1%
02:30 AUD RBA Meeting Minutes

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