Previous Day's Market Highlights
The dollar softened yesterday after overnight gains following Wednesday’s Fed minutes. This saw sterling-dollar back above 1.39, although it failed to regain 1.40, and euro-dollar rose back above 1.23. Sterling-euro traded either side of 1.13.
The ONS downgraded Q4 growth to 0.4% from its initial estimate of 0.5%, which contributed to morning sterling pressure. In the afternoon, the pound picked up, allowing it to regain 1.78 against the Aussie, 1.91 against the kiwi, and 1.77 against the Canadian dollar. Sterling is trading at its highest levels against the Canadian dollar since last May, with yesterday’s decline in Retail Sales adding to the loonie’s woes.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
Highlights today start with the final estimate of January Eurozone CPI (10:00 GMT). An unrevised figure would likely have little market impact, while any revisions could see at least an initial move in the euro. Subdued inflation has been a point of concern for the ECB when considering its next monetary policy move.
MPC Member Ramsden delivers a speech on productivity at noon, which could pose some event risk for the pound. Also key for the pound will be any Brexit headlines after May’s Cabinet meeting yesterday. Other central bank speakers include the Fed’s Rosengren, Dudley, and Mester (15:15, 18:30 GMT) and the ECB’s Cœuré (18:30 GMT).
In the afternoon, Canadian CPI (13:30 GMT) will drive the loonie’s direction. A slower year-on-year figure could put further pressure on the loonie, while a surprise to the upside could help it ease back from nine-month lows against the pound.
Today's Economic Calendar
|10:00||EUR||Final Eurozone CPI YoY (Jan)||1.3%||1.3%|
|10:00||EUR||Final Eurozone Core CPI YoY (Jan)||1.0%||1.0%|
|12:00||GBP||BoE's Ramsden Speaks||2.4%||1.7%|
|13:30||CAD||CPI YoY (Jan)||1.4%||1.9%|
|13:30||CAD||CPI MoM (Jan)||0.7%||-0.4%|
|13:30||CAD||Core CPI MoM (Jan)||0.1%|
|USD||Fed Monetary Policy Report|
|15:15||USD||Fed's Rosengren & Dudley Speak|
|18:30||USD||Fed's Mester Speaks|
|18:30||EUR||ECB's Coeure Speaks|
|20:40||USD||Fed's Williams Speaks|