Previous Day's Market Highlights
The euro made further gains against both the pound and the dollar yesterday as heightened North Korea tensions saw investors turn to safe havens and weighed on the US dollar. Stock markets also came under pressure, whilst gold and the Japanese yens were amongst the havens that benefited.
Sterling-euro fell to a new low since October 2009 around 1.0745, while dollar weakness pushed euro-dollar above 1.2000 for the first time since January 2015. Cable tested 1.2975 in the morning session, before the dollar reversed earlier losses against both the pound and the euro.
The kiwi weakened briefly overnight on RBNZ Governor Wheeler’s speech, which included a comment on the need for a weaker currency.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.0797||1.1208||1.0745||4.13%|
|GBP / USD||1.2909||1.3272||1.2777||3.73%|
|EUR / USD||1.1955||1.2070||1.1662||2.99%|
|GBP / NZD||1.7799||1.7929||1.7522||2.27%|
|GBP / CAD||1.6174||1.6727||1.6006||4.31%|
Today's Market Highlights
The dollar has seen demand this morning as it recovers from yesterday’s lows hit following heightened tensions after North Korea’s missile firing. The dollar will remain in focus today with the second estimate of Q2 GDP and ADP Employment Change out this afternoon (13:15, 13:30 BST).
A revision higher to economic growth and decent ADP report—closely watched as a signal of what might be expected from Friday’s key NonFarm Payrolls figure—could offer the dollar some additional support. Fed Member Powell speaks on "The Role of Boards at Large Financial Firms" (14:15 BST).
The UK releases mid-level data this morning, including Net Lending to Individuals, Consumer Credit, and Mortgage Approvals (09:30 BST). These indicators tend to have a relatively limited impact on the pound, barring any surprises. Attention for the pound will largely be on Friday’s Manufacturing PMI release.
Today's Economic Calendar
|09:30||GBP||Net Lending to Individuals MoM (Jul)||£5.3B||£5.6B|
|09:30||GBP||Consumer Credit (Jul)||£1.500B||£1.458B|
|10:00||EUR||Economic Sentiment Indicator (Aug)||111.3||111.2|
|13:00||EUR||German Consumer Price Index YoY (Aug)||1.8%||1.7%|
|13:15||USD||ADP Employment Change (Aug)||185K||178K|
|13:30||USD||Second Estimate of GDP (Q2)||2.7%||2.6%|
|13:30||CAD||Current Account (Q2)||-17.40B||-14.05B|
|14:15||USD||Fed Member Powell Speaks|
|15:30||USD||EIA Crude Oil Inventories||-1.908M||-3.327M|
|00:01||GBP||Gfk Consumer Confidence (Aug)||-13||-12|
|02:00||NZD||ANZ Business Congidence (Aug)||19.4|
|02:30||AUD||HIA New Home Sales MoM (Jul)||-6.9%|