Central Banks in Focus

Sterling was subdued yesterday with little out on the calendar to give it a boost. Economic and political pressures include last week’s disappointing production data and the upcoming publication of the Repeal Bill amidst ongoing Brexit uncertainty. Sterling-dollar fell below 1.2900 and sterling-euro traded either side of 1.1300.

Previous Day's Market Highlights

Sterling was subdued yesterday with little out on the calendar to give it a boost. Economic and political pressures include last week’s disappointing production data and the upcoming publication of the Repeal Bill amidst ongoing Brexit uncertainty. Sterling-dollar fell below 1.2900 and sterling-euro traded either side of 1.1300.
 
The Canadian dollar retained its strength against the pound yesterday following Friday’s above-forecast employment data and on speculation that the Bank of Canada may hike interest rates tomorrow from 0.50% to 0.75%. If the Bank instead holds steady and disappoints market expectations, the loonie may weaken.
 
The New Zealand dollar fell overnight on reports of an earthquake hitting off New Zealand’s South Island. 

 

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.1307 1.1469 1.1261 1.81%
GBP / USD 1.2879 1.3031 1.2589 3.39%
EUR / USD 1.1390 1.1446 1.1119 2.86%
GBP/AUD 1.6901 1.7107 1.6612 2.89%
GBP / NZD 1.7813 1.7881 1.7338 3.04%
GBP / CAD 1.6602 1.6996 1.6554 2.60%

Today's Market Highlights

The calendar picks up slightly today although the main events kick off tomorrow with UK employment data, the Bank of Canada’s interest rate decision, and Fed Chair Yellen’s testimony on the Fed’s Semiannual Monetary Policy Report.
 
Attention today will primarily be on central bankers as markets keep an eye out for any hints as to the direction of monetary policy.
 
MPC Member Haldane participates in a panel discussion at the Essentials of Numeracy launch event (11:00 BST). Haldane has typically been a more dovish member, but last month struck a more hawkish tone, prompting a sterling rally. MPC Member Broadbentspeaks at the Scottish Council for Development and Industry (12:00 BST).
 
In the afternoon, Fed Member Brainard speaks about normalising central banks’ balance sheets (17:30 BST). Fed Member Kashkari speaks at 18:20. The Fed meets next on 26 July.
 
Canadian Housing Starts (13:15 BST) may be in sharper focus ahead of a possible interest rate hike tomorrow. 

Today's Economic Calendar

Time Currency Release Consensus Previous
11:00 GBP MPC Member Haldane Speaks
12:00 GBP MPC Member Broadbent Speaks
13:15 CAD Housing Starts s.a. YoY (Jun) 201.5K 194.7K
15:00 USD JOLTS Job Openings (May) 5.890M 6.044M
17:30 USD Fed Member Brainard Speaks
18:20 USD Fed Member Kashkari Speaks
01:30 AUD Westpac Consumer Confidence (Jul) -1.8%