Previous Day's Market Highlights
Sterling-euro continued to trade in a tight range around 1.14. The dollar regained the upper hand to test year-to-date lows against both the pound and the euro, meeting some resistance around 1.3305 against the pound but breaking through to a new low against the euro. Heightened political risk and softer economic data have cast doubts on the timing of ECB policy normalisation, putting pressure on the euro. Sterling came under pressure last week on disappointing data and renewed Brexit negotiation concerns.
Developments in Italian politics drove the euro lower heading into Monday’s session. After initially strengthening on the president’s rejection of Eurosceptic Paolo Savona as finance minister, the single currency weakened on concerns that the heightened political uncertainty could lead to new elections, possibly resulting in the populist parties’ achieving a larger majority. Conte subsequently gave up his mandate to try to form a government.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
Euro-dollar fell below 1.16 this morning and sterling-dollar below 1.33 to their lowest levels since November, while sterling-euro continues to trade above 1.14.
The calendar gets to a quiet start after yesterday’s bank holiday in the UK and the US. A pick-up in the S&P/Case-Shiller Home Price Indices could offer the dollar some support this afternoon but may overall have a relatively limited market impact. ECB Member Mersch will give the keynote speech on “The Continental Perspective” at the Frankfurt Finance Summit. ECB Member Lautenschläger speaks later at the Colloquium “Monetary policy – End of (hi) story?” organised by the Center for Financial Studies.
Notable releases this week include the second estimate of Q1 US GDP, the Bank of Canada’s interest rate decision, preliminary May Eurozone CPI, US Personal Consumption Expenditures, UK Manufacturing PMI, and the May US jobs report.
Today's Economic Calendar
|11:30||EUR||ECB's Mersch Speaks|
|14:00||USD||S&P/Case-Shiller Home Price Indices YoY (Mar)||7.0%||6.8%|
|17:30||EUR||ECB's Lautenschlager Speaks|
|22:00||NZD||RBNZ Financial Stability Report|
|23:45||NZD||Building Permits s.a. MoM (Apr)||14.7%|
|02:10||NZD||RBNZ Governor Orr Speaks|
|02:30||AUD||Building Permits MoM (Apr)||-3.0%||2.6%|