GBPUSD Hits New Highs

Sterling-dollar broke through the 1.3048 resistance level on Friday to hit 1.3100 for the first time this year, its highest levels since September. The dollar weakened on the back of a further slowdown in CPI and a decline in Retail Sales in June.

Previous Day's Market Highlights

Sterling-dollar broke through the 1.3048 resistance level on Friday to hit 1.3100 for the first time this year, its highest levels since September. The dollar weakened on the back of a further slowdown in CPI and a decline in Retail Sales in June.
 
Euro-dollar picked up around 0.4% on the disappointing US data, nearing but not breaking the rate’s previous recent high of 1.1490. 

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.1434 1.1450 1.1176 2.39%
GBP / USD 1.3096 1.3120 1.2589 4.05%
EUR / USD 1.1453 1.1490 1.1119 3.23%
GBP/AUD 1.6772 1.7107 1.6612 2.89%
GBP / NZD 1.7871 1.7899 1.7338 3.13%
GBP / CAD 1.6580 1.6978 1.6354 3.68%

Today's Market Highlights

The main economic release today is Final Eurozone CPI (10:00 BST). Headline CPI is forecast to remain unrevised at 1.3% and core CPI to be revised down from 1.2% to 1.1%. The revised figures typically have limited market impact barring any significant variation from expectations.
 
Slower CPI growth than expected could weigh on the euro as markets look for clues that the ECB may soon normalise policy.
 
In the afternoon, markets will keep an eye on the US’s NY Empire State Manufacturing Index and Canada’s Foreign Securities Purchases (13:30 BST). Traders will also look for any headlines as the UK begins the second round of Brexit negotiations with the EU. 
 
Data out overnight is forecast to show that CPI slowed in New Zealand in Q2, which may weigh on the kiwi.
 
Highlights this week include UK CPI out Tuesday and the ECB’s latest interest rate decision on Thursday. 

Today's Economic Calendar

Time Currency Release Consensus Previous
10:00 EUR Final CPI YoY (Jun) 1.3% 1.3%
10:00 EUR Final Core CPI YoY (Jun) 1.1% 1.2%
13:30 USD NY Empire State Manufacturing Index (Jul) 15.0 19.8
13:30 CAD Foreign Securities Purchases $9.78B $10.60B
23:45 NZD CPI QoQ (Q2) 0.2% 1.0%
23:45 NZD CPI YoY (Q2) 1.9% 2.2%
02:30 AUD RBA Meeting Minutes