Previous Day's Market Highlights
Sterling rallied yesterday despite a dip in Services PMI. The euro and the dollar continued to pull back on expectations that the path to monetary policy normalisation in both the US and the Eurozone might be slower than previously anticipated. Sterling-euro regained 1.0900 and sterling-dollar regained 1.3000 for the first time since mid-August.
Fed Member Brainard struck a dovish tone, expressing caution over raising interest rates again whilst inflation remains subdued. The euro has been in focus ahead of Thursday's ECB meeting.
The Aussie weakened as Q2 GDP growth came in shy of forecasts at 0.8% and on wage growth concerns. Heightened North Korea tensions continued to weigh on risk sentiment.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.0921||1.1102||1.0745||3.22%|
|GBP / USD||1.3045||1.3054||1.2777||2.05%|
|EUR / USD||1.1923||1.2070||1.1662||3.38%|
|GBP / NZD||1.8025||1.8112||1.7522||3.26%|
|GBP / CAD||1.6140||1.6567||1.6006||3.39%|
Today's Market Highlights
Attention will primarily be on the US and Canada with the economic calendar quiet for the rest of the morning. The US releases its latest trade and services data (13:30, 15:00 BST).
The Bank of Canada announces will likely keep interest rates on hold when it announces its latest policy decisions, given softer inflation (15:00 BST). After recently striking a hawkish tone and hiking interest rates to 0.75% in July, some investors’ expectations may be disappointed if the Bank holds steady, thereby weakening the loonie.
Overnight, gains in the trade balance, particularly through higher exports, could offer the Aussie support.