Previous Day's Market Highlights
Euro-dollar hit a new 2018 low in the 1.17-1.18 band, its lowest levels since 18 December. This marks an over 6% decline since the rate hit three-year highs above 1.25 in February. The euro was softer as markets digested headlines that Italy’s Five Star and the League coalition might ask the ECB to forgive €250B in Italian bonds.
Sterling was subdued against the dollar but managed to hold above Tuesday’s lows, later making overnight progress above 1.35 as the press reported that the government plans to tell the EU that it intends to stay in the customs union. Sterling-euro made some further gains in the 1.14-1.15 band.
The pound performed less well against the commodity currencies, giving up 1.80 against the Aussie after having risen to 1.81 the previous night on disappointing Australian wage data. The Aussie made further gains last night despite a mixed jobs report. The Unemployment Rate rose to 5.6% from 5.5%, but Employment Change was higher than projected and the Participation Rate also rose.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
While the UK calendar is light, investors will watch any further Brexit headlines, particularly around the customs union. ECB VP Vítor Constâncio speaks twice today, first delivering the closing remarks at the Colloquium organised by the ECB in his honour and then giving the opening address at the ECB’s third annual macroprudential policy and research conference.
The US releases weekly Initial Jobless Claims (13:30), expected to remain well below the 300K level consistent with a strengthening labour market, if to tick up a touch form 211K to 215K. A softer Philadelphia Fed Manufacturing Survey is also forecast.
Fed Member Kashkari, one of the more dovish members, speaks this afternoon (15:45) and will likely maintain his recent tone. MPC Member Haldane will deliver the closing remarks at the Economics Statistics Centre of Excellence’s Conference on Economic Measurement this evening (17:00). Fed Member Kaplan rounds out the day’s speakers.
Today's Economic Calendar
|11:30||EUR||ECB VP Constancio Speaks|
|13:00||EUR||ECB VP Constancio Speaks|
|13:30||USD||Initial Jobless Claims (11 May)||215K||211K|
|13:30||USD||Philadelphia Fed Manufacturing Survey (May)||21.0||23.1|
|13:30||USD||Foreign Securities Purchases (Mar)||$3.00B||$3.96B|
|15:45||USD||Fed's Kashkari Speaks|
|17:00||GBP||MPC Member Haldane Speaks|
|18:30||USD||Fed's Kaplan Speaks|