Previous Day's Market Highlights
Sterling rallied yesterday around an above-forecast Retail Sales print that found that sales rebounded in April from March’s decline. However, sterling failed to maintain those gains. Brexit uncertainty remained a downwards pressure as headlines highlighted reports that the government could seek to extend membership in the customs union with the EU until 2023. BoE Governor Carney said last night that a “disorderly” Brexit could require the Bank to keep interest rates low to support the economy.
Trumps’ decision to call off the peace summit with Kim Jong-un increased political uncertainty and, combined with under-forecast housing data, put some downwards pressure on the dollar.
The Turkish lira weakened again yesterday after rallying the previous day on a rate hike meant to shore up the currency. Investors have speculated that this hike won’t be sufficient and another will be required to prop up the currency. Turkish interest rates are currently at 16.5%. The lira has fallen more than 22% against the pound so far this year.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
The UK releases its second estimate of Q1 GDP this morning (09:30 BST). No change is expected, which may see a muted sterling reaction. However, any surprise to the upside could at least temporarily strengthen the pound.
The US releases Durable Goods Orders, a decline in which could weigh on the dollar. BoE Governor Carney and Fed Chair Powell are participating on a panel discussion on “The future of central banking” (14:20), which investors will keep any eye on for any monetary policy clues.
Monday is a Bank Holiday in the US and the UK.
Today's Economic Calendar
|09:30||GBP||GDP QoQ (Q1)||0.1%||0.1%|
|09:30||GBP||Total Business Investment YoY (Q1)||2.3%||2.6%|
|13:00||AUD||RBA Assist Gov Bullock Speaks|
|13:30||USD||Durable Goods Orders (Apr)||-1.4%||2.6%|
|13:30||USD||Core Durable Goods Orders (Apr)||0.5%||0.0%|
|14:15||EUR||ECB's Coeure Speaks|
|14:20||USD||Fed Chair Powell Speaks|
|14:20||GBP||BoE Governor Carney Speaks|
|15:00||USD||Michigan Consumer Sentiment||98.8||98.8|
|15:00||USD||Existing Home Sales MoM (Apr)||5.57M||5.60M|
|16:45||USD||Fed Member Kaplan Speaks|
|16:45||USD||Fed Member Bostic Speaks|
|16:45||USD||Fed member Evans Speaks|
|20:20||EUR||German Buba President Weidmann Speaks|