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 / 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
|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%|