Central Banker Conference, UK CPI in Focus

A busy morning focuses on UK CPI and the ECB's conference featuring the heads of major central banks.

Previous Day's Market Highlights

After falling as markets opened on heightened political uncertainties following weekend headlines regarding the future of PM May’s leadership, sterling corrected some of those losses. Gains against the dollar were further by a softer greenback in the afternoon session, allowing sterling-dollar to briefly regain 1.3100.
 
Sterling-euro held above 1.1200. Sterling-dollar briefly regained 1.3100 after testing lows around 1.3060, towards the lower end of its trading range since early September, since when the rate has held above 1.3000. The pound regained key figures against the commodity currencies.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.1202 1.1451 1.1083 3.21%
GBP / USD 1.3096 1.3321 1.3039 2.12%
EUR / USD 1.1689 1.1858 1.1553 2.57%
GBP/AUD 1.7162 1.7368 1.6675 3.99%
GBP / NZD 1.9103 1.9433 1.8347 5.59%
GBP / CAD 1.6689 1.7171 1.6383 4.59%

Today's Market Highlights

The calendar picks up pace today. UK CPI will be in focus this morning (09:30 GMT), with prices expected to pick up to 3.1% from 3.0% in September. However, such gains are unlikely to significantly adjust market expectations of another Bank rate hike following the less hawkish tone struck by the bank, and therefore the upside may be limited barring any surprises.
 
Shortly thereafter (10:00 GMT), Fed Chair Yellen, ECB President Draghi, and BoE Governor Carney will participate in a panel discussion at the ECB’s conference on central bank communication. Markets will pay close attention for any clues as to the direction of monetary policy, which could prompt volatility.
 
Other releases of note include the second estimate of Eurozone GDP, with no revision expected, and September Industrial Production (10:00 GMT), as well as US Producer Price Index data (13:30 GMT). The day’s other speakers include the Fed’s Bullard (13:15 GMT), the ECB’s Cœuré (13:30 GMT), and MPC Member Cunliffe (17:30 GMT).

Today's Economic Calendar

Time Currency Release Consensus Previous
09:30 GBP CPI YoY (Oct) 3.1% 3.0%
09:30 GBP Core CPI YoY (Oct) 2.8% 2.7%
10:00 Multi BoE Governor Carney, Fed Chair Yellen, ECB President Draghi Speak
10:00 EUR ZEW Survey - German Economic Sentiment (Nov) 20.0 17.6
10:00 EUR ZEW Survey - Eurozone Economic Sentiment 29.3 26.7
10:00 EUR Preliminary GDP s.a. QoQ (Q3) 0.6% 0.6%
10:00 EUR Preliminary GDP s.a. YoY (Q3) 2.5% 2.5%
10:00 EUR Industrial Production s.a. MoM (Sep) -0.6% 1.4%
10:00 EUR Industrial Production w.d.a. YoY (Sep) 3.2% 3.8%
13:15 USD Fed's Bullard Speaks
13:30 USD PPI YoY (Oct) 2.4% 2.6%
13:30 USD Core PPI YoY (Oct) 2.3% 2.2%
13:30 EUR ECB's Coeure Speaks
17:30 GBP MPC Member Cunliffe Speaks
23:30 AUD Westpac Consumer Confidence (Nov) 3.6%
00:30 AUD Wage Price Index YoY (Q3) 1.9%