Previous Day's Market Highlights
The dollar remained softer yesterday, enabling the pound to hit highs around 1.4160 and the euro to regain the 1.23 handle. Sterling-euro held within the 1.14-1.15 band, failing to break the 1.15 psychological barrier.
The pound fared less well against the commodity currencies, which gained as the US dollar weakened. Optimism that a NAFTA deal is approaching has also supported the Canadian dollar, including some reports of a possible deal in principle by the end of the week.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
The pound is a touch higher this morning, in part after hawkish comments from MPC Member McCafferty, who said in an interview with Reuters that the MPC “shouldn’t dally” in raising rates “modestly”. McCafferty was one of two MPC Members who dissented in favour of raising rates in March. Investors anticipate a BoE rate hike in May.
The lack of high-level items on the day’s calendar may keep exchange rates in familiar territory. MPC Member Haldane will speak on the role of central banks and societal inequality this morning in Melbourne (10:30 BST). Markets will digest any monetary policy clues. Euro production data unlikely to cause much currency movement. The US releases Producer Price Index data, which also tend to have a relatively muted impact, although signs of rising price pressures generally add to the argument for raising interest rates.
Today's Economic Calendar
|09:30||USD||Fed's Kaplan Speaks|
|10:30||GBP||MPC Member Haldane Speaks|
|13:15||CAD||Housing Starts s.a. YoY (Mar)||219.0K||229.7K|
|13:30||USD||Core Producer Price Index YoY (Mar)||2.6%||2.5%|
|13:30||USD||PPI YoY (Mar)||2.9%||2.8%|
|01:30||AUD||Westpac Consumer Confidence (Apr)||0.2%|
|06:00||AUD||RBA Governor Lowe Speaks|