Previous Day's Market Highlights
Sterling rallied to a one-month high against the euro as investors anticipated a potential rate hike when the BoE announces its latest policy decisions this Thursday. Sterling-dollar returned above 1.3200.
The euro has seen pressure recently amidst political tensions in Spain and after the ECB was more dovish than anticipated by some investors. The single currency had a limited reaction to a rise in the Eurozone’s Economic Sentiment Indicator to 114, its highest levels since 2001.
The dollar and stock markets saw pressure on reports that the Trump administration might phase in corporate tax cuts and as Trump’s Russia scandal came into renewed focus. The White House said that Trump would announce the next Fed Chair on Thursday.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.1350||1.1373||1.1069||2.67%|
|GBP / USD||1.3215||1.3339||1.3027||2.34%|
|EUR / USD||1.1644||1.1880||1.1574||2.58%|
|GBP / NZD||1.9275||1.9334||1.8367||5.00%|
|GBP / CAD||1.6957||1.7002||1.6350||3.83%|
Today's Market Highlights
The euro will be in focus this morning with the latest CPI, GDP, and Unemployment Ratefigures expected (10:00 GMT). Softer inflation could weigh on the euro following last week’s more dovish ECB meeting, whilst GDP figures are forecast to be mixed and the Unemployment Rate is expected to fall further.
In the afternoon, a pick-up in GDP (12:30 GMT) could support the Canadian dollar but may see limited gains after last week’s BoC meeting reduced expectations of a December move. BoC Governor Poloz speaks later this evening (19:30 GMT). Poloz and Senior Deputy Governor Wilkins will testify before the House of Commons Standing Committee on Finance.
The kiwi dollar could gain overnight if employment data show improvement in Q3 as projected (21:45 GMT).
Thursday is set to be a key day as Trump is expected to announce his pick for the next Fed chair, currently expected to be Powell. The Bank of England will announce whether it is raising interest rates following last year’s cut to a record low of 0.25%.
Today's Economic Calendar
|10:00||EUR||Preliminary GDP s.a. YoY (Q3)||2.4%||2.3%|
|10:00||EUR||Preliminary GDP s.a. QoQ (Q3)||0.5%||0.6%|
|10:00||EUR||Unemployment Rate (Sep)||9.0%||9.1%|
|10:00||EUR||Preliminary CPI YoY (Oct)||1.4%||1.5%|
|10:00||EUR||Preliminary Core CPI YoY (Oct)||1.2%||1.3%|
|12:30||CAD||GDP MoM (Aug)||0.1%||0.0%|
|13:00||USD||S&P/Case-Shiller Home Price Indices YoY (Aug)||6.0%||5.8%|
|13:45||USD||Chicago Purchasing Managers' Index (Oct)||62.0||65.2|
|19:30||CAD||BoC Governor Poloz Speaks|
|21:45||NZD||Employment Change (Q3)||0.8%||-0.2%|
|21:45||NZD||Unemployment Rate (Q3)||4.7%||4.8%|