Previous Day's Market Highlights
The dollar strengthened overnight as the Turkish lira tumbled to a new record low on concerns about its financial system. The pound was trading above 7.70 against the lira at one point Friday morning. The euro fell on concerns about European banks’ exposure to the situation in Turkey. As a result, euro-dollar fell below 1.15 early Friday morning to hit its lowest levels in over a year—since July 2017. The dollar strength saw sterling-dollar headed lower as well, breaking below 1.28 to a new low since August 2017.
The pound remained subdued Thursday amidst concerns of a no-deal Brexit but managed to regain 1.11 against the euro and briefly eye 1.29 against the dollar before greenback strength resumed.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
It’s a busier day for the pound as a raft of releases come into focus this morning (09:30 BST). A pick-up in Q2 economic growth could provide the pound with some at least temporary support, although a surprise to the upside would be needed for any notable gains and a sub-forecast release could instead increase sterling weakness. Overall, any potential gains may be capped if other releases disappoint, and the pound is likely to remain relatively subdued for the time being given ongoing Brexit uncertainties and dollar strength.
In the afternoon, US CPI data are in focus (13:30). A pickup in the headline reading is forecast with core inflation projected to stay on hold at 2.3%, but the overall impact may be relatively limited if the figures are little changed. Markets will continue to keep a close eye on the latest geopolitical and trade headlines.
Today's Economic Calendar
|9:30am||GBP||GDP MoM (Jun)||0.2%||0.3%|
|9:30am||GBP||GDP QoQ (Q2)||0.4%||0.2%|
|9:30am||GBP||GDP YoY (Q2)||1.3%||1.2%|
|9:30am||GBP||Manufacturing Production MoM (Jun)||0.3%||0.4%|
|9:30am||GBP||Manufacturing Production YoY (Jun)||1.0%||1.1%|
|9:30am||GBP||Industrial Production MoM (Jun)||0.4%||-0.4%|
|9:30am||GBP||Industrial Production YoY (Jun)||0.7%||0.8%|
|9:30am||GBP||Total Business Investment YoY (Q2)||1.6%||2.0%|
|9:30am||GBP||Total Trade Balance (Jun)||£-2.50B||£-2.79B|
|9:30am||GBP||Goods Trade Balance (Jun)||£-3.600B||£-3.491B|
|1:30pm||USD||CPI YoY (Jul)||3.0%||2.9%|
|1:30pm||USD||Core CPI YoY (Jul)||2.3%||2.3%|
|1:30pm||CAD||Unemployment Rate (Jul)||5.9%||6.0%|
|1:30pm||CAD||Net Change in Employment (Jul)||17.0K||31.8K|