GBP/EUR Holds 1.13

Sterling rallied further, whilst the Trump administration was in focus. Eurozone CPI and GDP and Canadian GDP are out today.

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/AUD 1.7202 1.7241 1.6675 3.28%
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 CPIGDP, 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

Time Currency Release Consensus Previous
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%