Eyes on US Data, Draghi Ahead of Queen's Speech Vote

Rate movement was relatively limited yesterday in light of a fairly quiet calendar. Sterling drifted slightly higher against the euro and the dollar. The dollar was better bid against the euro and inched towards 1.1140. Initial Jobless Claims were slightly higher than forecast but remain low, indicating a strengthening labour market.

Previous Day's Market Highlights

The dollar weakened Friday as preliminary Manufacturing and Services PMIs disappointed expectations. Euro-dollar made gains towards 1.1200. Sterling-dollar traded relatively sideways after regaining 1.2700 in the morning. Sterling-euro struggled to hold gains above 1.1400 and eased back towards 1.1360.
 
The Canadian dollar fell on soft CPI data. The loonie had strengthened the previous day as Retail Sales surprised to the upside.   
 
Formal Brexit negotiations began last week as the Conservatives continued to seek a final deal with the DUP. Exit terms will be agreed before a trade deal. The BoE’s Chief Economist Andy Haldane struck a more hawkish tone than expected, indicating he could see an argument for raising interest rates by the end of the year. Haldane is typically one of the more dovish MPC members. 

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.1386 1.1554 1.1277 2.40%
GBP / USD 1.2744 1.2978 1.2589 2.30%
EUR / USD 1.1191 1.1296 1.1109 1.66%
GBP/AUD 1.6809 1.7494 1.6612 5.04%
GBP / NZD 1.7498 1.8273 1.7385 4.86%
GBP / CAD 1.6888 1.7536 1.6721 4.64%

Today's Market Highlights

Key releases from the US today include the Chicago Fed National Activity Index and Durable Goods Orders (13:30 BST). Orders overall are forecast to have declined from April to May, while core goods orders are forecast to have picked up.
 
ECB President Draghi will give the opening remarks at the ECB Forum on Central Banking (18:30 BST).
 
Overnight, New Zealand releases May trade data.
 
While much of this week’s data releases are of mid-level importance, markets will continue to keep a close eye on central bank comments and political developments. Parliament this week debates and votes on the Queen’s Speech

Today's Economic Calendar

Time Currency Release Consensus Previous
13:30 USD Durable Goods Orders (May) -0.6% -0.8%
13:30 USD Core Durable Goods Orders (May) 0.4% -0.5%
13:30 USD Chicago Fed National Activity Index (May) 0.20 0.49
16:00 EUR ECB President Draghi Youth Dialogue
18:30 EUR ECB President Draghi - Opening Remarks
23:45 NZD Trade Balance NZD (May) $419M $578M