Previous Day's Market Highlights
The euro rose above 1.2000 against the dollar Tuesday morning for the first time since January 2015 after both ECB President Draghi and Fed Chair Yellen avoided direct discussions on the direction of monetary policy at Jackson Hole, disappointing some traders’ expectations.
ECB President Draghi also did not discuss the euro’s strength, which had featured as a point of concern in the latest ECB meeting accounts. Heightened political concerns as well as reduced Fed rate expectations have broadly weighed on the dollar.
Sterling ticked higher yesterday with a quiet calendar on the UK’s bank holiday providing some relief. The latest round of Brexit negotiations began late yesterday and remain a downside risk.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.0785||1.1208||1.0786||3.77%|
|GBP / USD||1.2960||1.3272||1.2777||3.73%|
|EUR / USD||1.2016||1.2022||1.1662||2.99%|
|GBP / NZD||1.7888||1.7929||1.7522||2.27%|
|GBP / CAD||1.6181||1.6727||1.6006||4.31%|
Today's Market Highlights
North Korea’s missile firing sparked a turn to safe havens, including gold and the Japanese yen, amongst heightened political tensions. This added to pressure on the dollar, and risk-off sentiment also weighed on the Aussie dollar.
US housing and Consumer Confidence data will be in focus this afternoon (14:00, 15:00 BST), ahead of an expected decline in Australian Building Permits overnight, which may weigh on the Aussie.
The calendar picks up later in the week, with the second estimate of US GDP out tomorrow, Eurozone CPI out Thursday and UK Manufacturing PMI and US NonFarms out Friday.
Today's Economic Calendar
|13:30||CAD||Raw Material Price Index (Jul)||-0.3%||-3.7%|
|14:00||USD||S&P/Case-Shiller Home Price Indices YoY (Jun)||5.7%||5.7%|
|15:00||USD||Consumer Confidence (Aug)||120.7||121.1|
|02:30||AUD||Building Permits YoY (Jul)||-16.6%||-2.3%|
|02:30||AUD||Building Permits MoM (Jul)||-5.0%||10.9%|