Previous Day's Market Highlights
Sterling strengthened at the start of yesterday’s session on reports that the Conservatives and DUP would announce a formal agreement.
US Durable Goods Orders contracted 1.1% in May, more than the 0.6% forecast. Growth in core goods orders also disappointed expectations. The dollar fell on the release. Euro-dollar briefly regained 1.1200, trading within a 50-pip range around that level throughout the day.
After dollar demand saw sterling-dollar retrace from 1.2760 in the morning session, cable continued to meet resistance around 1.2750 throughout the day. Sterling-euro failed to break 1.1400.
The euro weakened yesterday as ECB President Draghi defended current monetary policy and warned against tightening policy too soon.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.1370||1.1554||1.1277||2.40%|
|GBP / USD||1.2724||1.2978||1.2589||2.30%|
|EUR / USD||1.1191||1.1296||1.1109||1.66%|
|GBP / NZD||1.7415||1.8273||1.7385||4.86%|
|GBP / CAD||1.6857||1.7536||1.6721||4.64%|
Today's Market Highlights
The euro has strengthened against both the pound and the dollar this morning as ECB President Draghi speaks from 09:00 BST, emphasising that the Bank’s policy has been effective and that factors weighing on inflation will likely be temporary. Euro-dollar is up around 0.5% and sterling-euro is down around 0.4%.
The Bank of England will be in focus this morning as Governor Carney speaks on the Financial Stability Report (10:30, 11:00 BST). Any signs of increased risks to financial stability could put the pound under pressure, particularly given heightened uncertainty. Carney recently struck a more dovish tone on monetary policy than that taken by some of his colleagues on the MPC.
Key this afternoon will be comments from Fed Chair Yellen (18:00 BST), who speaks at the British Academy in London. An upbeat view despite recent softer data could support the dollar.
Other Fed speakers include Harker (16:15 BST), who speaks at the European Economics & Financial Centre in London, and Kashkari (22:30 BST), who speaks at a town hall event in Michigan.
Today's Economic Calendar
|09:00||EUR||ECB President Draghi Speaks|
|09:30||AUD||RBA Deputy Governor Debelle Speaks|
|10:30||GBP||Financial Stability Report|
|11:00||GBP||BoE Governor Carney Speaks|
|14:00||USD||S&P/Case-Shiller Home Price Indices YoY (Apr)||5.9%||5.9%|
|15:00||USD||Consumer Confidence (Jun)||116.0||117.9|
|16:15||USD||Fed Member Harker Speaks|
|18:00||USD||Fed Chair Yellen Speaks|
|22:30||USD||Fed Member Kashkari Speaks|