Previous Day's Market Highlights
Exchange rates were little changed yesterday. Cable held in the 1.29-1.30 band and sterling-euro continued to trade above 1.11. Euro-dollar remained above 1.16. The pound climbed against the Canadian dollar to regain 1.71.
The US dollar reaction to a slightly sub-forecast ADP Employment Change release was relatively limited. Weekly Initial Jobless Claims and the ISM Non-Manufacturing PMI both beat forecasts.
The Canadian dollar gained after a speech from BoC Deputy Governor Wilkins, in which she said that the BoC considered dropping the “gradual approach” to raising interest rates and was relatively upbeat on the economic growth outlook. The loonie later saw additional gains after Trump said that he thinks Canada will be part of a new NAFTA deal. This saw sterling-loonie dip back below 1.70.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
Today’s releases kick off with the final estimate of the Eurozone’s Q2 GDP (10:00 BST). Growth is projected to be unrevised at 0.4% quarter-on-quarter and 2.2% year-on-year. Overall, then, the release may have a muted impact on the euro unless there are any surprises.
In the afternoon, attention will largely be on the US’s August jobs report (13:30). Signs of strength in both the number of jobs added to the economy and wage growth would see the dollar strengthen. With the labour market tightening, wage growth has been in particularly as markets watch for signals that earning are picking up. If either figure disappoints, the dollar could instead weaken.
Canada will also be releasing employment data, and the loonie could come under pressure on a projected increase in the Unemployment rate. NAFTA headlines will remain key.
Looking ahead to next week, highlights include UK employment data and meetings of both the Bank of England and the European Central Bank.
Today's Economic Calendar
|10:00am||EUR||GDP s.a. QoQ (Q2)||0.4%||0.4%|
|10:00am||EUR||GDP s.a. YoY (Q2)||2.2%||2.2%|
|1:30pm||USD||Nonfarm Payrolls (Aug)||191K||157K|
|1:30pm||USD||Average Hourly Earnings MoM (Aug)||0.2%||0.3%|
|1:30pm||USD||Average Hourly Earnings YoY (Aug)||2.7%||2.7%|
|1:30pm||USD||Unemployment Rate (Aug)||3.8%||3.9%|
|1:30pm||USD||Fed's Rosengren Speaks|
|1:30pm||CAD||Unemployment Rate (Aug)||5.9%||5.8%|
|1:30pm||CAD||Net Change in Employment (Aug)||5.0K||54.1K|
|2:00pm||USD||Fed's Mester Speaks|
|3:00pm||CAD||Ivey Purchasing Managers' Index s.a. (Aug)||61.4||61.8|
|5:45pm||USD||Fed's Kaplan Speaks|