Previous Day's Market Highlights
Sterling briefly gained around an above-forecast Services PMI print, but the release’s overall market impact was limited. GBP/EUR softened further towards 1.12. A weaker dollar reversed Wednesday’s gains as EUR/USD inched to a new high since September and GBP/USD continued to hold above 1.35 but failed to reclaim 1.36.
ADP Employment Change surprised to the upside at 250K versus 190K expected. Weekly Initial Jobless Claims were higher than expected at 250K but still below the 300K consistent with a strengthening labour market.
The Dow Jones Industrial Average surpassed 25,000 for the first time as equities continued to rally on positive macro data.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.1236||1.1509||1.1223||2.49%|
|GBP / USD||1.3548||1.3613||1.3304||2.27%|
|EUR / USD||1.2057||1.2089||1.1717||3.08%|
|GBP / NZD||1.8941||1.9776||1.8921||4.32%|
|GBP / CAD||1.6944||1.7385||1.6868||2.97%|
Today's Market Highlights
A gain in core Eurozone inflation (10:00 GMT) back above 1.0% for the first time since September could strengthen the euro. However, gains may be limited if the headline figure slips as projected and as CPI continues to hold below the ECB’s 2.0% target rate. Under-target inflation and the euro’s strength will likely keep an ECB rate hike a distant prospect for the time being.
Following yesterday’s US releases, the December jobs report will be in focus today (13:30 GMT), with particular attention paid to the NonFarm Payrolls and Hourly Earningsfigures. Expectations for the NonFarm figure will likely be higher after yesterday’s above-forecast ADP print, therefore risking investor disappointment should the release come in as forecast.
Canada releases trade and employment data (13:30 GMT). A tick up in the Unemployment Rate and smaller Net Change in Employment could weigh on the loonie.
Today's Economic Calendar
|10:00||EUR||Preliminary CPI YoY (Dec)||1.0%||0.9%|
|10:00||EUR||Preliminary Core CPI YoY (Dec)||1.4%||1.5%|
|13:30||USD||NonFarm Payrolls (Dec)||190K||228K|
|13:30||USD||Average Hourly Earnings MoM (Dec)||0.3%||0.2%|
|13:30||USD||Average Hourly Earnings YoY (Dec)||2.5%||2.5%|
|13:30||USD||Unemployment Rate (Dec)||4.1%||4.1%|
|13:30||USD||Trade Balance (Nov)||$-49.5B||$-48.7B|
|13:30||CAD||Trade Balance (Nov)||$-1.20B||$-1.47B|
|13:30||CAD||Unemployment Rate (Dec)||6.0%||5.9%|
|13:30||CAD||Net Change in Employment (Dec)||1.0K||79.5K|
|15:00||USD||ISM Non-Manufacturing PMI (Dec)||57.6||57.4|
|15:00||CAD||Ivey Purchasing Managers Index s.a. (Dec)||62.2||63.0|
|15:15||USD||Fed's Harker Speaks|
|17:30||USD||Fed's Mester Speaks|