Dollar Pushes Back

The dollar made gains against both the pound and the euro, although the pound later recovered ground. Final US Q4 GDP is in focus today.

Previous Day's Market Highlights

While the euro initially saw a bid tone, it was the dollar’s gains that were particularly notable. As a result, sterling-euro temporarily fell back below 1.14, hitting one-week lows, while sterling-dollar lost over 1% to fall towards 1.4050, briefly touching its lowest levels since last Wednesday, before reclaiming 1.41. Sterling’s afternoon recovery saw it regain 1.84 against the Aussie, 1.95 against the kiwi, and 1.82 against the Canadian dollar.
 
The euro’s initial gains were attributed to end-of-month demand, but the single currency met resistance against the dollar after Eurozone economic sentiment and confidence figures disappointed expectations. Fed member Bostic said that fiscal policy is creating more uncertainty for monetary policy.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.1439 1.1538 1.1150 3.36%
GBP/USD 1.4177 1.4245 1.3711 3.75%
EUR/USD 1.2394 1.2477 1.2154 2.59%
GBP/AUD 1.8458 1.8474 1.7599 4.60%
GBP/NZD 1.9524 1.9644 1.8914 3.72%
GBP/CAD 1.8276 1.8417 1.7617 4.34%

Today's Market Highlights

Today’s mid-level releases are primarily from the US. Of particular note is the finalestimate of Q4 GDP, with a revision higher projected (13:30 BST). The data will likely have limited impact on the dollar unless the revised figure differs significantly from expectations. The first estimate of economic growth had come in at 2.6% before being revised lower; the projected upwards revision would surpass the preliminary figure.
 
Tomorrow it is the UK’s turn to release final Q4 growth figures. GDP is expected to come in unrevised quarter-on-quarter and to be revised higher from 1.4% to 1.5% year-on-year.

Today's Economic Calendar

Time Currency Release Consensus Previous
13:30 USD GDP Annualised (Q4) 2.7% 2.5%
13:30 USD Goods Trade Balance (Feb) $-72.5B $-74.4B
13:30 USD Core Personal Consumption Expenditures QoQ (Q4) 1.9% 1.9%
13:30 USD PCE QoQ (Q4) 2.7% 2.7%
15:00 USD Pending Home Sales MoM (Feb) 2.1% -4.7%
15:30 USD EIA Crude Oil Inventories (23 March) 1.200M -2.622M
17:00 USD Fed's Bostic Speaks
22:45 NZD Building Permits s.a. MoM (Feb) 0.2%
00:01 GBP Gfk Consumer Confidence (Mar) -10 -10

Caxton