Dollar Dips on Disappointing CPI

Sterling fell below 1.10 against the euro on Friday after subdued US CPI data prompted a jump in euro-dollar back above 1.1800. Sterling-dollar briefly regained 1.3000 before retracing lower. Sterling’s drop against the euro took it to new lows since October’s flash crash.

Previous Day's Market Highlights

Sterling fell below 1.10 against the euro on Friday after subdued US CPI data prompted a jump in euro-dollar back above 1.1800. Sterling-dollar briefly regained 1.3000 before retracing lower. Sterling’s drop against the euro took it to new lows since October’s flash crash.
 
The dollar also came under pressure last week as Fed speakers struck a more cautious tone and as tensions rose between the US and North Korea. Investors turned to safe havens, including the Swiss franc, Japanese yen, and gold.  
 
Sterling started the week on the backfoot but briefly found support in the second half of the week on the back of an uptick in Industrial Production.
 
The kiwi weakened off after the RBNZ kept interest rates on hold and emphasised the need for a lower currency. 

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.0996 1.1436 1.0966 4.11%
GBP / USD 1.3009 1.3272 1.2932 2.56%
EUR / USD 1.1830 1.1912 1.1435 4.00%
GBP/AUD 1.6484 1.6770 1.6269 3.03%
GBP / NZD 1.7784 1.7994 1.7398 3.31%
GBP / CAD 1.6500 1.6727 1.6238 2.92%

Today's Market Highlights

A quiet calendar today consists primarily of Eurozone Industrial Production (10:00 BST), which is forecast to decline and may have a muted impact or weigh on the euro.
 
Overnight, the RBA releases meeting minutes. Preliminary German Q2 GDP, out tomorrow morning, is forecast to pick up, which may support the euro heading into the European session.
 
It’s a busier week for the pound, with UK CPI out Tuesday, employment data Wednesday, and Retail Sales Thursday. Highlights for the US include Retail Sales and for the Eurozone include final July CPI and preliminary Q2 GDP

Today's Economic Calendar

Time Currency Release Consensus Previous
10:00 EUR Eurozone Industrial Production s.a. MoM (Jun) -0.5% 1.3%
10:00 EUR Eurozone Industrial Production w.d.a. YoY (Jun) 2.8% 4.0%
02:30 AUD RBA Meeting Minutes
07:00 EUR Preliminary German GDP QoQ (Q2) 0.7% 0.6%