Dollar Inches Higher

Amidst a quiet day, the dollar regained some further ground. Eurozone data is in focus this morning.

Previous Day's Market Highlights

Markets saw fairly limited movement in light of a quiet calendar and given the Bank Holiday in the US, although the dollar maintained a slight bid tone following Friday’s gains, when it pulled back from a three-year low against the euro around 1.2550. Sterling-dollar fell back below 1.40 and euro-dollar held below 1.24. Sterling-euro continued to trade within the familiar 1.12-1.13 range.
 
BoE Governor Carney’s comments on leadership and values had relatively limited market impact, as did the RBA’s Meeting Minutes, which were largely in line with expectations. The RBA has recently struck a more dovish tone, indicating it is waiting for inflation to pick up before raising interest rates.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.1285 1.1512 1.1221 2.53%
GBP/USD 1.3949 1.4346 1.3763 4.06%
EUR/USD 1.2360 1.2556 1.2206 2.79%
GBP/AUD 1.7624 1.7861 1.7351 2.86%
GBP/NZD 1.8964 1.9466 1.8942 2.69%
GBP/CAD 1.7561 1.7646 1.7301 1.96%

Today's Market Highlights

The calendar is again fairly quiet today, which may mean market movement is again fairly limited. However, there are a few releases to keep an eye on, particularly for euro or commodity currency traders.
 
In the morning (10:00 GMT), Eurozone and German Economic Sentiment figures are in focus, while the afternoon sees preliminary Consumer Confidence estimates (15:00 GMT). Both measures are expected to slow, which may generally weigh on the euro, or at least do little to support it, but overall the market impact tends to be limited.
 
It’s a largely quiet calendar for the US, and the UK has only CBI Industrial Orders for traders to watch. For those looking at commodity currencies, Canada releases Wholesale Sales and New Zealand has the Global Dairy Trade Price Index (dairy is New Zealand’s main export). Overnight, Australia releases Q4 wage figures, with little change expected.
 
Otherwise, it’s a case of waiting for a busier Wednesday, which starts off with the latest employment and wage data from the UK, followed by the Bank of England’s Inflation Report Hearing, and the Fed’s meeting minutes round the day off in the evening session.

Today's Economic Calendar

Time Currency Release Consensus Previous
10:00 EUR German ZEW Survey - Economic Sentiment (Feb) 16.0 20.4
10:00 EUR Eurozone ZEW Survey - Economic Sentiment (Feb) 28.4 31.8
11:00 GBP CBI Industrial Trends Survey - Orders MoM (Feb) 10 14
13:30 CAD Wholesale Sales MoM (Dec) 0.4% 0.7%
15:00 EUR Preliminary Consumer Confidence (Feb) 1.0 1.3
NZD Global Dairy Trade Price Index 5.9%
00:30 AUD Wage Price Index QoQ (Q4) 0.5% 0.5%
00:30 AUD Wage Price Index YoY (Q4) 2.0% 2.0%

Caxton