Previous Day's Market Highlights
The dollar saw a bid tone yesterday, hitting new 2018 highs against the pound and the euro. Sterling-dollar fell back below 1.35, briefly dipping below January’s low of 1.3458. Euro-dollar fell towards 1.18. Dollar strength was supported in part by the Retail Sales release, which saw decent if under-forecast growth in April and upwards revisions to previous prints. The softer euro enabled sterling-euro to test the 1.14 level.
As for the day’s other data, German Q1 GDP slowed more than expected, while Eurozone GDP was unrevised from preliminary estimates. UK Labour Market data were largely as expected: Average Earnings slowed to 2.6% excluding bonuses but rose to 2.9% including them, and the Unemployment Rate was steady in March at 4.2%. However, Claimant Count Change rose more than expected in April.
The Aussie weakened overnight as quarterly wage growth was slower than expected, with the index up only 0.5% versus the 0.6% projected and seen in the previous quarter. This briefly enabled sterling-Aussie to test the 1.81 level.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
Final estimates of April Eurozone CPI are expected to confirm a slowdown to 1.2% in headline inflation and 0.7% in core inflation (10:00 BST), which may have limited impact or weigh slightly on the euro. ECB President Draghi will give the welcome address in honour of Vítor Constâncio, which may have little market impact unless there are any monetary policy hints.
Increases in Industrial Production and Capacity Utilization could support the dollar this afternoon (14:15).
Today's Economic Calendar
|10:00||EUR||CPI YoY (Apr)||1.2%||1.2%|
|10:00||EUR||Core CPI YoY (Apr)||0.7%||0.7%|
|13:00||EUR||ECB President Draghi|
|13:30||USD||Housing Starts MoM (Apr)||1.310M||1.319M|
|13:30||USD||Building Permits MoM (Apr)||1.350M||1.354M|
|13:30||USD||Fed's Bostic Speaks|
|13:30||EUR||ECB's Coeure Speaks|
|14:15||USD||Industrial Production MoM (Apr)||0.6%||0.5%|
|14:15||USD||Capacity Utilization (Apr)||78.4%||78.0%|
|15:30||USD||EIA Crude Oil Inventories (11 May)||-0.763M||-2.197M|
|15:30||EUR||ECB's Praet Speaks|
|17:00||CAD||BoC Schembri Speaks|
|23:30||USD||Fed's Bullard Speaks|
|23:45||NZD||Producer Price Index - Input QoQ (Q1)||0.3%||2.1%|
|02:00||AUD||Consumer Inflation Expectation (May)||3.6%|
|02:30||AUD||Unemployment Rate s.a. (Apr)||5.5%||5.5%|
|02:30||AUD||Employment Change s.a. (Apr)||20.0K||4.9K|