Previous Day's Market Highlights
Amidst a relatively quiet calendar, the pound was a touch softer yesterday. The pound saw some volatility on political headlines regarding potential threats to May’s leadership. Sterling-euro held around 1.12 but briefly dropped below the key level, and sterling-dollar traded either side of 1.30.
The Aussie strengthened overnight on above-forecast employment data. The Unemployment Rate held steady at 5.3% as forecast, the lowest level since 2012, while Employment Change and the Participation Rate were both higher than projected. This pushed sterling-Aussie further below 1.82.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
Central banks are in focus today as both the Bank of England and the European Central Bank announce their latest policy decisions. Whilst neither bank is expected to announce any major policy changes, markets will keep a close eye on any updated guidance on inflation expectations—and thus interest rate expectations. Any signs of caution could lead to sterling or euro weakness, whilst a more positive outlook could instead be currency positive. If there are no new clues, the announcements could instead be relatively non-events.
The Bank of England will release its decision and statement at 12:00 BST, followed by the ECB decision at 12:45 and ECB press conference at 13:30.
In the US, August CPI will be in focus, with core inflation forecast to hold steady at 2.4% and headline inflation to slip from 2.9% to 2.8%.
Today's Economic Calendar
|12:00pm||GBP||BoE Interest Rate Decision||0.75%||0.75%|
|12:00pm||GBP||BoE Monetary Policy Summary & Minutes|
|12:45pm||EUR||ECB Interest Rate Decision||0.0%||0.0%|
|12:45pm||EUR||ECB Deposit Rate Decision||-0.4%||-0.4%|
|1:30pm||USD||CPI YoY (Aug)||2.8%||2.9%|
|1:30pm||USD||Core CPI YoY (Aug)||2.4%||2.4%|
|1:30pm||EUR||ECB Press Conference|
|3:00pm||USD||Fed's Quarles Speaks|
|6:15pm||USD||Fed's Bostic Speaks|