Previous Day's Market Highlights
The euro weakened to a one-week low against the dollar yesterday morning on concerns that Italy’s budget meeting would be delayed. The euro later gained on above-forecast German inflation figures.
The dollar strengthened in the afternoon, which pushed sterling-dollar back below 1.31. The greenback gained on largely positive economic data. This included confirmation of 4.2% economic growth in Q2 and above-forecast quarterly Personal Consumption Expenditures and Durable Goods Orders. However, some of the afternoon’s raft of releases disappointed, including core Durable Goods Orders and Pending Home Sales.
The day’s central bank speakers overall provided little new information.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
Highlights today as September and Q3 draw to a close include the final estimate of Q2 GDP in the UK (09:30 BST), expected to confirm growth of 0.4% quarter-on-quarter and 1.3% year-on-year. Sterling could see some modest support on the release, but unrevised figures may have an overall limited impact.
The euro has been softer this morning after Italy agreed a budget as markets express caution about the implications for Italy’s debt, currently the second highest in the Eurozone as a percentage of GDP. Preliminary September Eurozone inflation figures (10:00) are projected to show that both headline and inflation ticked back up to July levels—2.1% for headline CPI and 1.1% for core CPI. An acceleration in underlying inflation will be needed to shift rate hike expectations forward from the second half of next year.
Mixed but broadly positive US data could support the dollar in the afternoon session (13:30). The Canadian dollar could strengthen on a slight pick-up in monthly GDP to 0.1% (13:30).
Today's Economic Calendar
|9:30am||GBP||GDP QoQ (Q2)||0.4%||0.4%|
|9:30am||GBP||GDP YoY (Q2)||1.3%||1.3%|
|9:30am||GBP||Total Business Investment YoY (Q2)||0.8%||0.8%|
|9:30am||GBP||Current Account (Q2)||£-19.40B||£-17.72B|
|10:00am||EUR||CPI YoY (Sep)||2.1%||2.0%|
|10:00am||EUR||Core CPI YoY (Sep)||1.1%||1.0%|
|1:30pm||USD||Core PCE YoY (Aug)||2.0%||2.0%|
|1:30pm||USD||Personal Income MoM (Aug)||0.4%||0.3%|
|1:30pm||USD||Personal Spending (Aug)||0.3%||0.4%|
|1:30pm||USD||Fed Member Barkin Speaks|
|1:30pm||CAD||GDP MoM (Jul)||0.1%||0.0%|
|1:35pm||EUR||ECB's Praet Speaks|
|2:20pm||GBP||BoE's Ramsden Speaks|
|2:45pm||USD||Chicago Purchasing Managers' Index (Sep)||62.5||63.6|