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||1.1280||1.1397||1.0745||5.72%|
|GBP / USD||1.3531||1.3617||1.2777||6.17%|
|EUR / USD||1.1994||1.2093||1.1739||2.93%|
|GBP / NZD||1.8590||1.8742||1.7522||6.29%|
|GBP / CAD||1.6642||1.6675||1.5837||5.03%|
Today's Market Highlights
The euro will be in focus this morning, with the latest Current Account and EconomicSentiment figures out (09:00, 10:00 BST). The Current Account surplus is forecast to have widened in July. Economic Sentiment is projected to improve in September. Positive releases could offer the euro support this morning.
Attention turns to the US this afternoon, with Q2 Current Account and housing dataamongst the expected releases (13:30 BST) ahead of Wednesday’s Fed rate decision. The Fed is expected to keep policy on hold this week.
New Zealand also releases its Q2 Current Account reading (23:45 BST), ahead of tomorrow’s Q2 economic growth figure.
Today's Economic Calendar
|10:00||EUR||ZEW Survey - German Economic Sentiment (Sep)||12.5||10.0|
|10:00||EUR||ZEW Survey - Eurozone Economic Sentiment (Sep)||32.4||29.3|
|13:30||USD||Building Permits MoM (Aug)||1.200M||1.223M|
|13:30||USD||Housing Starts MoM (Aug)||1.175M||1.155M|
|13:30||USD||Current Account (Q2)||$-115.1B||$-116.8B|
|13:30||USD||Import Price Index YoY (Aug)||2.1%||1.5%|
|13:30||USD||Export Price Index YoY (Aug)||0.8%|
|NZD||Global Dairy Trade Price Index||0.3%|
|23:45||NZD||Current Account QoQ (Q2)||$-0.875B||$0.244B|