Previous Day's Market Highlights
The pound traded lower yesterday, first on profit-taking and then on Bank of England Governor Mark Carney’s comments that any rate hikes would be “gradual” and “limited”. Cable fell back below 1.3500 for the first time since Friday’s rally, but remains around some of its highest levels since the day after the referendum.
Sterling-euro dipped back below 1.1300. The euro had a muted reaction as Eurozone CPI was unrevised in August. Headline inflation rose 1.5% and core inflation rose 1.3%.
The Canadian dollar fell to its lowest levels against the pound since 3 August following a speech from the Bank of Canada’s Deputy Governor, Timothy Lane. Lane said that the Bank is watching the strength of the loonie. The BoC has already hiked rates twice this year, and remains data dependent on doing so again.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.1260||1.1397||1.0745||5.72%|
|GBP / USD||1.3511||1.3617||1.2777||6.17%|
|EUR / USD||1.1999||1.2093||1.1739||2.93%|
|GBP / NZD||1.8362||1.8742||1.7609||6.05%|
|GBP / CAD||1.6590||1.6675||1.5837||5.03%|
Today's Market Highlights
Slower Retail Sales growth than expected could add to recent pressure on the pound and see it edge lower (09:30 BST). Traders are awaiting Prime Minister Theresa May’s Brexitspeech in Florence on Friday.
The Fed is expected to keep interest rates on hold tonight (19:00 BST). Key will be guidance on the Fed’s thoughts on inflation and its implications for the path of rate hikes going forward, as well as the unwinding of the Fed’s bond holdings, which markets expect the Fed to announce it will begin in October. This would see tighter monetary conditions.
The Fed will release its updated dot plot, which shows the FOMC’s interest rate projections, and Chair Janet Yellen will speak at a press conference (19:30 BST).
Later this evening, New Zealand releases Q2 GDP. Faster growth may support the kiwi ahead of elections on 23 September.
Today's Economic Calendar
|09:30||GBP||Retail Sales YoY (Aug)||1.1%||1.3%|
|09:30||GBP||Core Retail Sales YoY (Aug)||1.4%||1.5%|
|09:30||GBP||Retail Sales MoM (Aug)||0.2%||0.3%|
|09:30||GBP||Core Retail Sales MoM (Aug)||0.2%||0.5%|
|15:00||USD||Existing Home Sales MoM (Aug)||5.46M||5.44M|
|15:30||USD||EIA Crude Oil Inventories (Sep 11)||2.925M||5.888M|
|19:00||USD||Fed Interest Rate Decision||1.25%||1.25%|
|19:00||USD||Fed Economic Projections|
|9:30||USD||Fed Press Conference|
|23:45||NZD||GDP QoQ (Q2)||0.8%||0.5%|
|23:45||NZD||GDP YoY (Q2)||2.5%||2.5%|