Previous Day's Market Highlights
The pound pushed forwards yesterday, receiving general support from hopes of a transition deal, and reclaimed 1.13 against the euro to hit its highest levels since 28 February. A softer euro saw euro-dollar inch lower towards 1.2300, while sterling-dollarfluctuated within the familiar 1.39 bracket as it continued to meet resistance ahead of 1.3990.
The pound rose above 1.82 against the Canadian dollar for the first time since the referendum and is now trading around pre-referendum lows. The rate has recovered nearly 16% from its January 2017 lows below 1.60.
The economic calendar was relatively quiet yesterday. US Initial Jobless Claims fell to 226K from 230K; a reading below 300K is consistent with an improving labour market.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
Up first today is the final estimate of February CPI in the Eurozone (10:00 GMT). Data are expected to be unrevised and show that headline inflation slowed to 1.2% and core inflation held at 1.0%. As inflation figures are in particular focus after the ECB removed its easing bias last week, any revisions could see a knee-jerk euro reaction; otherwise, any impact may be limited.
In the afternoon, mixed US data are projected. Softer housing data (12:30 GMT) and Consumer Sentiment (14:00 GMT) could put pressure on the dollar, while an expected pick-up in Industrial Production and Capacity Utilization (13:15 GMT) could ultimately see a firmer tone as the week draws to a close. Political headlines remain key for both the dollar and the pound, and continued hopes of a Brexit transition deal may see additional sterling strength.
Next week is set to be a busier one with UK CPI and employment data, a likely rate hike from the US Fed, the Bank of England meeting, and the EU Summit all on the agenda. Greater volatility could be seen next week, particularly off the back of political headlines, as Trump’s administration changes and Brexit transition period negotiations remain in focus.
Today's Economic Calendar
|10:00||EUR||Final CPI YoY (Feb)||1.2%||1.2%|
|10:00||EUR||Final Core CPI YoY (Feb)||1.0%||1.0%|
|12:30||USD||Housing Starts MoM (Feb)||1.280M||1.326M|
|12:30||USD||ECB's Lautenschlager Speaks||1.320M||1.377M|
|12:30||CAD||Foreign Securities Purchases (Jan)||$-1.97B|
|13:15||USD||Industrial Production MoM (Feb)||0.3%||-0.1%|
|14:00||USD||Michigan Consumer Sentiment Index (Mar)||99.3||99.7|