Previous Day's Market Highlights
Yesterday was a volatile day for sterling. After initially gapping higher on Prime Minister May’s soft Brexit Chequers plan as Asian markets opened Sunday evening, the pound lost its gains during the afternoon session as Boris Johnson resigned as Foreign Secretary. This followed the overnight resignation of David Davis as Brexit Secretary. However, the lack of challenge to May’s leadership gave the pound some relief. Davis and Johnson have been replaced by Dominic Raab and Jeremy Hunt, respectively.
The events saw sterling fall back below 1.13 against the euro and 1.33 against the dollar. Euro-dollar continued to trade above 1.17, meeting resistance around 1.1790, before heading lower as the dollar gained. The economic calendar was light and exchange rates overall remained in familiar ranges.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
Markets will continue to keep an eye on UK politics. Any signs of a challenge to Prime Minister May’s leadership would increase uncertainty and weaken the pound. Also key are this morning’s data releases (09:30 BST)—positive figures could give the pound relief, while disappointing figures could see it head lower.
A further softening in Economic Sentiment (10:00) could put some downwards pressure on the euro, but the overall impact is likely to be relatively limited. The Canadian dollar could see some support off the back of improved housing data (13:15, 13:30).
Today's Economic Calendar
|9:30am||GBP||Manufacturing Production MoM (May)||0.9%||-1.4%|
|9:30am||GBP||Manufacturing Production YoY (May)||1.9%||1.4%|
|9:30am||GBP||Industrial Production MoM (May)||0.5%||-0.8%|
|9:30am||GBP||Industrial Production YoY (May)||1.9%||1.8%|
|9:30am||GBP||Total Trade Balance (May)||£-5.28B|
|9:30am||GBP||GDP MoM (May)||0.3%|
|10:00am||EUR||Eurozone ZEW - Economic Sentiment (Jul)||-13.2||-12.6|
|10:00am||EUR||German ZEW - Economic Sentiment (Jul)||-18.0||-16.1|
|1:15pm||CAD||Housing Starts s.a. YoY (Jun)||210K||196K|
|1:30pm||CAD||Building Permits MoM (May)||0.1%||-4.6%|
|6:00pm||EUR||ECB's Lautenschlager Speaks|
|2:30am||AUD||Home Loans (May)||-1.9%||-1.4%|