GBPUSD Breaks 1.31

The euro gained yesterday as the ECB kept policy on hold and ECB President Draghi signalled that the ECB would announce its tapering decision this autumn. The euro eventually hit a new high since January 2015 against the dollar in overnight trading, around 1.2090. Sterling-euro fell back below 1.0900 but held clear of recent lows.

Previous Day's Market Highlights

The euro gained yesterday as the ECB kept policy on hold and ECB President Draghi signalled that the ECB would announce its tapering decision this autumn. The euro eventually hit a new high since January 2015 against the dollar in overnight trading, around 1.2090. Sterling-euro fell back below 1.0900 but held clear of recent lows.
 
The softer dollar saw cable push higher to break back above 1.3100 for the first time in a month. Initial Jobless Claims jumped to 298K, up from 236K the previous week and the highest number of claims since 2015. The number was affected by Hurricane Harvey. Reported tensions between President Trump and economic advisor Gary Cohn may also have weighed on the dollar.
 
Sterling inched back below 1.5900 against the Canadian dollar, the key level briefly broken on Wednesday after the Bank of Canada surprised many investors by hiking interest rates. 

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.0886 1.1043 1.0745 2.70%
GBP / USD 1.3134 1.3150 1.2777 2.84%
EUR / USD 1.2064 1.2093 1.1662 3.56%
GBP/AUD 1.6209 1.6570 1.6165 2.44%
GBP / NZD 1.7933 1.8188 1.7522 3.66%
GBP / CAD 1.5876 1.6567 1.5837 4.41%

Today's Market Highlights

The pound may pick up this morning on gains in Manufacturing and Industrial Productiondata (09:30 BST), whilst July’s total trade deficit is projected to come in narrower than June’s.
 
In the afternoon, the Canadian dollar is in focus with the release of employment data (13:30 BST). Employment Change is forecast to increase, whilst the Unemployment Rate is expected to remain steady at 6.3%.
 
The Fed’s Harker delivers the opening remarks at a consumer finance research conference (13:45 BST). The comments may have limited impact on the dollar barring any signals as to the Fed’s thinking ahead of its monetary policy meeting later this month.
 
Next week is set to be a busy week for the pound: the UK releases the latest CPI, employment, and Retail Sales data, whilst the BoE announces its latest policy decision on Thursday.  

Today's Economic Calendar

Time Currency Release Consensus Previous
09:30 GBP Manufacturing Production YoY (Jul) 1.7% 0.6%
09:30 GBP Manufacturing Production MoM (Jul) 0.3% 0.0%
09:30 GBP Industrial Production YoY (Jul) 0.4% 0.3%
09:30 GBP Industrial Production MoM (Jul) 0.2% 0.5%
09:30 GBP Total Trade Balance (Jul) £-3.250B £-4.564B
09:30 GBP Goods Trade Balance (Jul) £-11.950B £-12.722B
09:30 AUD RBA Governor Lowe Speaks
13:30 CAD Unemployment Rate (Aug) 6.3% 6.3%
13:30 CAD Net Employment Change (Aug) 19.0K 10.9K
13:45 USD Fed's Harker Speaks