Euro Softer, Dollar Gains

The ECB announced yesterday that it would extend monthly asset purchases to September at the reduced rate of €30B from January on. The decision wasn’t unanimous. The euro weakened on the announcements, which may have been more dovish than some investors expected.

Previous Day's Market Highlights

The ECB announced yesterday that it would extend monthly asset purchases to September at the reduced rate of €30B from January on. The decision wasn’t unanimous. The euro weakened on the announcements, which may have been more dovish than some investors expected.
 
The US dollar rallied after the House of Representatives’ budget approval further paved the way for tax reform. Sterling fell back after Wednesday’s rally on an above-forecast GDP print. This pushed sterling-dollar lower towards 1.3100.  
 
The Aussie dollar weakened overnight after Deputy Prime Minister Barnaby Joyce was declared ineligible for parliament due to holding New Zealand citizenship as well at the time of election. Sterling-Aussie jumped back above 1.7200 before correcting lower.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.1276 1.1398 1.1069 2.89%
GBP / USD 1.3107 1.3436 1.3027 3.04%
EUR / USD 1.1623 1.1880 1.1669 1.78%
GBP/AUD 1.7151 1.7241 1.6675 3.28%
GBP / NZD 1.9165 1.9334 1.8367 5.00%
GBP / CAD 1.6884 1.7002 1.6350 3.83%

Today's Market Highlights

US GDP is expected to have slowed in Q3 due to the impact of the hurricanes (13:30 BST). A softer print may weigh on the dollar but slower growth is expected to be temporary. It is one of the final releases ahead of next week’s Fed meeting. The Fed is expected to keep interest rates on hold when it announces its latest decision on Wednesday.  
 
The Bank of England also announces its latest policy decision next week. With market expectations high for a potential rate hike after GDP picked up in Q3, the greater risk for the pound may be to the downside should the BoE disappoint investors by holding steady on rates.

Today's Economic Calendar

Time Currency Release Consensus Previous
13:30 USD Preliminary GDP Annualised (Q3) 2.5% 3.1%
13:30 USD Personal Consumption Expenditures QoQ (Q3) 1.2% 0.3%
13:30 USD Core Personal Consumption Expenditures QoQ (Q3) 1.3% 0.9%
15:00 USD Michigan Consumer Sentiment Index (Oct) 100.9 101.1