Euro Strength Concerns ECB

The pound traded in both directions as Retail Sales rose at a slower pace in July than in June but largely beat forecasts. Sterling-euro briefly broke back above 1.1000 before retreating below the key level. Sterling-dollar retraced early-morning gains above 1.2900. Euro-dollar fell towards 1.1660, before regaining 1.1700.

Previous Day's Market Highlights

The pound traded in both directions as Retail Sales rose at a slower pace in July than in June but largely beat forecasts. Sterling-euro briefly broke back above 1.1000 before retreating below the key level. Sterling-dollar retraced early-morning gains above 1.2900. Euro-dollar fell towards 1.1660, before regaining 1.1700.
 
Final Eurozone CPI figures saw an upwards revision to annual core CPI from 1.2% to 1.3%. The release had a muted market impact.
 
The ECB Monetary Policy Meeting Accounts revealed that the ECB discussed concerns over the euro’s strength. The euro fell around the release of the accounts.
 
Mixed US data, including slower Industrial Production gains and a dip in weekly Initial Jobless Claims, offered the dollar little support as it gave up ground against both the pound and the euro in the afternoon session. 

Stock markets were lower, in part following a terrorist attack in Barcelona last night. Political tensions in the US have also weighed. 

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.0982 1.1248 1.0936 2.77%
GBP / USD 1.2890 1.3272 1.2840 3.25%
EUR / USD 1.1737 1.1912 1.1612 2.52%
GBP/AUD 1.6325 1.6743 1.6190 3.30%
GBP / NZD 1.7663 1.7929 1.7398 2.96%
GBP / CAD 1.6317 1.6727 1.6226 3.00%

Today's Market Highlights

The week comes to an end with a quieter calendar. Low-level Eurozone Construction data typically has limited market impact. Canadian CPI will be in focus this afternoon as traders keep an eye on the strength of inflation. The Bank of Canada hiked interest rates in July.
 
The US releases Consumer Sentiment (15:00 BST) ahead of a speech from Fed MemberKaplan, who speaks at the Dallas County Community College (15:15 BST). Kaplan recently struck a cautious tone on hiking rates again this year given softer inflation. 

Today's Economic Calendar

Time Currency Release Consensus Previous
10:00 EUR Construction Output w.d.a. YoY (Jun) 2.6%
13:30 CAD CPI MoM (Jul) 0.0% -0.1%
13:30 CAD CPI YoY (Jul) 1.2% 1.0%
13:30 CAD Core CPI Common YoY (Jul) 1.4%
13:30 CAD Core CPI Trim YoY (Jul) 1.2%
13:30 CAD Core CPI Medan YoY (Jul) 1.6%
15:00 USD Michigan Consumer Sentiment Index (Aug) 94.0 93.4
15:15 USD Fed's Kaplan Speaks