Previous Day's Market Highlights
The pound caught a bid tone yesterday morning on reports that the EU parliament would call for privileged single market access for the UK. Sterling-euro rallied above 1.13 and held there throughout the day, supported by euro softness as euro-dollar fell towards 1.23. Sterling-dollar traded back towards 1.40.
Against the commodity currencies, sterling also saw gains. It moved above 1.77 against the Aussie, 1.90 against the kiwi, and 1.76 against the Canadian dollar.
Eurozone and German Economic Sentiment readings were higher than forecast but had little market impact, while preliminary Consumer Confidence slowed more than expected. The Aussie initially moved higher as Q4 wage growth picked up before reversing gains on a decline in Construction Work.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
Things pick up pace today. UK jobs data are up first (09:30 GMT), with wage growth and the Unemployment Rate forecast to have remained unchanged in December and Claimant Count Change to have fallen in January. The impact on the pound may be relatively limited (of course, barring any surprises) as attention will largely be on this afternoon’s Inflation Report Hearings (14:15 GMT) before the Treasury Select Committee.
Given that the BoE took a sharply more hawkish tone earlier this month, traders will be watching for any additional guidance on the timing of the next rate hike, particularly whether one could occur as soon as this May. Hawkish signals could strengthen the pound, but Governor Carney may try to downplay expectations, which in turn could pose a risk to the pound.
US data this afternoon include preliminary Market PMIs ahead of the Fed’s January meeting minutes (19:00 GMT). The minutes will likely keep the Fed on track to raise rates in March, but traders will closely interpret any nuance.
Today's Economic Calendar
|09:00||EUR||Preliminary Eurozone Manufacturing PMI (Feb)||59.3||59.6|
|09:00||EUR||Preliminary Eurozone Services PMI (Feb)||57.6||58.0|
|09:30||GBP||Average Earnings Including Bonus 3M/Yr (Dec)||2.5%||2.5%|
|09:30||GBP||Average Earnings Excluding Bonus 3M/Yr (Dec)||2.4%||2.4%|
|09:30||GBP||ILO Unemployment Rate 3M (Dec)||4.3%||4.3%|
|09:30||GBP||Claimant Count Change (Jan)||4.1K||8.6K|
|09:30||GBP||Public Sector Net Borrowing (Jan)||£-11.100B||£0.0979B|
|14:00||USD||Fed's Harker Speaks|
|14:15||GBP||Inflation Report Hearings|
|14:45||USD||Markit Manufacturing PMI (Feb)||55.3||55.5|
|14:45||USD||Markit Services PMI (Feb)||54.0||53.3|
|15:00||USD||Existing Homes Sales MoM (Jan)||5.61M||5.57M|
|01:15||USD||Fed's Kashkari Speaks|
|05:15||USD||Fed's Quarles Speaks|