Previous Day's Market Highlights
Euro-dollar rallied yesterday, breaking US election highs to trade at its highest levels in a year, since the UK’s referendum, above 1.1370. Dollar weakness saw sterling-dollar hit 1.2800 in overnight trading. Sterling-euro fell below 1.1300 to test 2017 lows.
The euro strengthened following comments from ECB President Draghi, who said that deflationary pressures had been replaced by inflationary ones and that factors weighing on inflation may be temporary, although with the caveat that accommodative policy remains necessary.
Markets focused on the hawkish comments and speculated that later this year the ECB may signal a further tapering of QE.
The dollar came under pressure on a delayed senate healthcare legislation vote and as Fed Member Harker took a cautious tone on inflation, which has recently softened. Fed Chair Yellen reiterated that the Fed would raise rates only gradually.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.1274||1.1572||1.1261||2.69%|
|GBP / USD||1.2800||1.2978||1.2589||2.30%|
|EUR / USD||1.1358||1.1379||1.1119||2.28%|
|GBP / NZD||1.7600||1.8273||1.7338||5.12%|
|GBP / CAD||1.6820||1.7536||1.6721||4.64%|
Today's Market Highlights
Central banks will be in focus again today as BoE Governor Carney, ECB President Draghi, BoJ Governor Kuroda, and BoC Governor Poloz speak in a panel discussion at the ECB Forum on Central Banking (14:30 BST).
Canadian dollar traders will keep an eye on weekly US EIA crude inventories (15:30 BST). Other releases to keep an eye on include the US’s Goods Trade Balance and Pending Home Sales (13:30, 15:00 BST).
Today's Economic Calendar
|09:00||EUR||M3 Money Supply YoY (May||5.0%||4.9%|
|13:30||USD||Goods Trade Balance (May)||$-66B||$-68B|
|14:30||GBP||BoE Governor Carney Speaks|
|14:30||JPY||BoJ Governor Kuroda Speaks|
|14:30||EUR||ECB President Draghi Speaks|
|14:30||CAD||BoC Governor Poloz Speaks|
|15:00||USD||Pending Home Sales MoM (May)||0.8%||-1.3%|
|15:30||USD||EIA Crude Oil Inventories (Jun 23)||-2.298M||-2.452M|
|19:20||CAD||BoC Deputy Governor Patterson Speaks|