Fed Minutes Leave Dollar Under Pressure Ahead of Inflation Data

Sterling-dollar made further gains above 1.3200, rising to around one-week highs, as euro-dollar inched further above 1.1800. Sterling-euro held below 1.1200.

Previous Day's Market Highlights

Sterling-dollar made further gains above 1.3200, rising to around one-week highs, as euro-dollar inched further above 1.1800. Sterling-euro held below 1.1200.  
 
Markets were relatively quiet yesterday with few items of note on the calendar ahead of the release of the Fed’s September meeting minutes, which provided little new information. Slow inflation remains a concern for many members, although many still see a third rate hike this year. The minutes kept the dollar under pressure.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.1165 1.1433 1.1047 3.38%
GBP / USD 1.3248 1.3664 1.3027 4.66%
EUR / USD 1.1867 1.2033 1.1669 3.03%
GBP/AUD 1.6930 1.7201 1.6425 4.51%
GBP / NZD 1.8624 1.8742 1.8177 3.01%
GBP / CAD 1.6477 1.6798 1.6007 4.71%

Today's Market Highlights

Investors will keep an eye on Eurozone Industrial Production this morning (10:00 BST) for any surprises. In the afternoon, the US releases Producer Price Index data ahead of tomorrow’s CPI figures (13:30 BST). Investors are looking for signals that inflation will rebound and keep the economy on track for a potential rate hike in December.
 
Canadian dollar traders will keep an eye on weekly crude oil inventories (16:00 BST). A hawkish central bank and higher oil prices have contributed to recent loonie strength.
 
ECB President Draghi and Fed member Brainard are to participate in a panel discussion on monetary policy at the Peterson Institute for International Economics (15:30 BST). The Fed’s Powell gives a speech titled “Prospects for Emerging Market Economics in a Normalizing Global Economy” (15:30 BST).
 
ECB member Praet will speak at the JPMorgan Investor Seminar (15:30 BST). Later in the day, the ECB’s Cœuré will speak in a panel discussion on financial stability at the IMF’s “Rethinking Macro Policy” conference. The BoE's Andy Haldane will also speak at the conference.

Today's Economic Calendar

Time Currency Release Consensus Previous
10:00 EUR Industrial Production w.d.a. YoY (Aug) 2.5% 3.2%
10:00 EUR Industrial Production s.a. MoM (Aug) 0.5% 0.1%
13:30 USD Producer Price Index YoY (Sep) 1.1%
13:30 USD Core PPI YoY (Sep) 2.0% 2.0%
13:30 USD Initial Jobless Claims (Sep 29) 1.935M 1.938M
13:30 CAD New Housing Price Index MoM (Aug) 0.3% 0.4%
14:00 GBP MPC Member Haldane Speaks
15:30 USD Fed Member Brainard Speaks
15:30 USD Fed Member Powell Speaks
15:30 EUR ECB President Draghi Speaks
15:30 EUR ECB's Praet Speaks
16:00 USD EIA Crude Oil Inventories (Oct 6) -1.991M -6.023M
21:00 EUR ECB's Coeure Speaks