Focus on UK Data Continues

The pound reversed gains made ahead of the inflation release after data underwhelmed and comments from BoE Governor Carney and other MPC members in testimony and hearings before the Treasury Select Committee were less hawkish than anticipated by some market participants.

Previous Day's Market Highlights

The pound reversed gains made ahead of the inflation release after data underwhelmed and comments from BoE Governor Carney and other MPC members in testimony and hearings before the Treasury Select Committee were less hawkish than anticipated by some market participants.
 
CPI rose to 3.0% in September, in line with forecasts, whilst core CPI was flat at 2.7%. RPI and PPI figures largely disappointed expectations. US Industrial Production surprised to the upside in September. Eurozone Core CPI was revised higher to 1.3%. 
 
Sterling-euro met resistance around 1.1290 before falling around 0.8%, whilst sterling-dollar saw highs around 1.3280 before dropping lower. Euro-dollar held below 1.1800. Sterling-Aussie traded at the lower end of its one-month range.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.1206 1.1433 1.1069 3.18%
GBP / USD 1.3172 1.3596 1.3027 4.19%
EUR / USD 1.1754 1.2005 1.1669 2.80%
GBP/AUD 1.6793 1.7201 1.6778 2.46%
GBP / NZD 1.8431 1.8742 1.8367 1.92%
GBP / CAD 1.6474 1.6798 1.6350 2.67%

Today's Market Highlights

ECB President Draghi is giving the opening speech at the ECB’s conference on “Structural reforms in the euro area” this morning (09:10 BST), and his comments will be closely watched for any hawkish signals on the direction of monetary policy. The ECB’s Praet will chair Session 2 this afternoon (12:45 BST) and Cœuré will chair Session 3 (15:15 BST).
 
A string of UK releases continues with employment and wage data (09:30 BST). Relatively unchanged or lower figures could add to pressure on the pound. In the afternoon, attention will be on the latest Fed comments ahead of the Fed’s Beige Book tonight and the next FOMC meeting on 1 November.
 
Softer employment data may weigh on the Australian dollar overnight.

Today's Economic Calendar

Time Currency Release Consensus Previous
09:30 GBP Claimant Count Change (Sep) 1.0K -2.8K
09:30 GBP ILO Unemployment Rate 3M (Aug) 4.3% 4.3%
09:30 GBP Average Earnings inc. Bonus 3M/Yr (Aug) 2.1% 2.1%
09:30 GBP Average Earnings exc. Bonus 3M/Yr (Aug) 2.0% 2.1%
12:45 EUR ECB's Praet Speaks
13:00 USD Fed's Kaplan Speaks
13:00 USD Fed's Dudley Speaks
13:30 USD Housing Starts MoM (Sep) -0.5% -0.8%
13:30 USD Import Price Index YoY (Sep) 2.6% 2.1%
13:30 USD Building Permits MoM (Sep) 1.245M 1.300M
15:15 EUR ECB's Coeure Speaks
15:30 USD EIA Crude Oil Inventories -4.242M -2.747M
19:00 USD Monthly Budget Statement (Sep) $6B $-108B
19:00 USD Fed's Beige Book
01:30 AUD Employment Change s.a. (Sep) 15.0K 54.2K
01:30 AUD Unemployment Rate s.a. (Sep) 5.6% 5.6%
03:00 CNY GDP YoY (Q3) 6.8% 6.9%