Previous Day's Market Highlights
After starting the year on the backfoot, the dollar reclaimed some ground yesterday. EUR/USD pulled further back towards 1.20 after failing to break 2017’s high of 1.2092 on Tuesday. The dollar strengthened on the Fed’s meeting minutes but not enough for a lasting break below 1.20, while GBP/USD held above 1.35 after reversing from highs above 1.36 earlier in the day.
The Fed minutes indicated that the Fed continues to view a gradual rise in rates as appropriate—the Fed has projected three hikes in 2018—and referenced the board’s discussion about the potential implications of the Trump administration’s tax plans. Data-wise, the US ISM Manufacturing PMI surprised to the upside.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.1238||1.1509||1.1223||2.49%|
|GBP / USD||1.3517||1.3613||1.3304||2.27%|
|EUR / USD||1.2028||1.2074||1.1717||2.96%|
|GBP / NZD||1.8978||1.9776||1.8939||4.23%|
|GBP / CAD||1.6925||1.7385||1.6868||2.97%|
Today's Market Highlights
The main release this morning is the UK’s Services PMI (09:30 GMT), which traders will keep a close eye on, but which may have limited impact barring any deviations from projections of a slight tick higher.
US employment data is in focus this week, with ADP Employment Change and Initial Jobless Claims out this afternoon (13:15, 13:30 GMT) ahead of tomorrow’s NonFarm Payrolls and wage growth figures.
Signs of a strong jobs report tomorrow could strengthen the dollar, enabling it to recover some additional ground after year-end weakness, although EUR/USD may continue to see support around 1.20.
Today's Economic Calendar
|09:30||GBP||Services PMI (Dec)||54.0||53.8|
|09:30||GBP||Consumer Credit (Nov)||£1.500B||£1.451B|
|13:15||USD||ADP Employment Change (Dec)||190K||190K|
|13:30||USD||Initial Jobless Claims (29 Dec)||240K||245K|
|13:30||CAD||Raw Material Price Index (Nov)||4.5%||3.8%|
|13:30||CAD||Industrial Product Price MoM (Nov)||0.8%||1.0%|
|14:45||USD||Markit Services PMI (Dec)||52.4||52.4|
|16:00||USD||EIA Crude Oil Inventories (29 Dec)||-5.182M||-4.609M|
|18:30||USD||Fed's Bullard Speaks|
|00:30||AUD||Trade Balance (Nov)||915M||105M|