Euro-dollar Hits 1.20, Jan 2015 Highs

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.

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/AUD 1.6324 1.6743 1.6171 3.42%
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

Time Currency Release Consensus Previous
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%