Previous Day's Market Highlights
Sterling-dollar rallied above 1.3200 for the first time since 16 September and euro-dollar above 1.1800 for the first time since January 2015, hitting highs after the close of European markets. The gains were largely led by broad dollar weakness, furthered by reports of the removal of White House Communications director Anthony Scaramucci ten days into the role.
A stronger core Eurozone inflation print provided the euro with additional support. Sterling-euro held below 1.1200.
The Reserve Bank of Australia kept interest rates on hold at 1.5% earlier this morning. The Aussie briefly strengthened heading into the announcement, before falling further against the pound overnight to temporarily reclaim 1.6500.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.1178||1.1438||1.1117||2.81%|
|GBP / USD||1.3212||1.3237||1.2812||3.21%|
|EUR / USD||1.1820||1.1847||1.1312||4.52%|
|GBP / NZD||1.7627||1.7994||1.7398||3.31%|
|GBP / CAD||1.6498||1.6856||1.6238||3.67%|
Today's Market Highlights
This morning, a gain in the UK’s Manufacturing PMI (09:30 BST) could offer the pound support. However, the greater risk may be to the downside if the release disappoints given the pound’s general vulnerability.
The US will be in focus this afternoon with Personal Consumption Expenditures, spending, and income out, as well as ISM Manufacturing PMI (13:30, 15:00 BST). Any gains in this afternoon’s releases could send a positive signal regarding the strength of the economy, which may in turn strengthen the dollar.
Either way, the dollar will likely continue to drive sterling-dollar and euro-dollar. Later this week, we have the Bank of England’s latest policy decision and the US’s July jobs report, which may see a volatile end to the week.
Today's Economic Calendar
|09:30||EUR||Manufacturing PMI (Jul)||54.5||54.3|
|10:00||EUR||GDP s.a. QoQ (Q2)||0.6%||0.6%|
|10:00||EUR||GDP s.a. YoY (Q2)||2.1%||1.9%|
|13:30||USD||PCE YoY (Jun)||1.3%||1.4%|
|13:30||USD||Core PCE YoY (Jun)||1.4%||1.4%|
|13:30||USD||PCE MoM (Jun)||0.0%||-0.1%|
|14:30||CAD||Manufacturing PMI (Jul)||54.7|
|14:45||USD||Markit Manufacturing PMI (Jul)||53.2||53.2|
|15:00||USD||ISM Manufacturing PMI (Jul)||56.4||57.8|
|15:00||NZD||Global Dairy Trade Price Index||0.2%|
|22:45||NZD||Employment Change (Q2)||0.7%||1.2%|
|22:45||NZD||Unemployment Rate (Q2)||4.8%||4.9%|
|02:30||AUD||Building Permits MoM (Jun)||1.0%||-5.6%|