Previous Day's Market Highlights
Bank of England Governor Carney discussed risks to the economy during a press conference on the Financial Stability Report. This contributed to pressure on the pound during the day’s session which, combined with a continued bid tone for the dollar, saw sterling-dollar head lower towards year-to-date lows, erasing gains made after last week’s BoE meeting.
Euro-dollar also moved lower as the dollar gained and the euro remained under pressure on political concerns, falling back below 1.16 to one-week lows. Sterling-euro was little changed in the lower half of the 1.13-1.14 band.
The pound also pulled back against the commodity currencies. It briefly gained against the Canadian dollar after the European close as BoC Governor Poloz made cautious comments that reduced expectations of a rate hike, but the loonie quickly reversed those losses. As expected, the Reserve Bank of New Zealand kept interest rates on hold at 1.75% and its statement was neutral to slightly dovish.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
Sterling-dollar broke below 1.31 this morning to hit new lows since November 2017. The next support level is around 1.3060.
Softer data, including this morning’s Eurozone Economic Sentiment Indicator (10:00 BST) and this afternoon’s final preliminary German CPI figures (by 13:00), could weigh on the euro. The final estimate of Q1 US GDP (13:30) is forecast to be unrevised at 2.2%. This may have a limited impact on the dollar barring any surprises.
Migration and Brexit are amongst the issues to be discussed at the EU Summit starting today. If most of the focus is on migration, there may be limited sterling impact, but Brexit discussions pose a risk.
Today's Economic Calendar
|10:00am||EUR||Economic Sentiment Indicator (Jun)||112.0||112.5|
|10:00am||EUR||Business Climate (Jun)||1.40||1.45|
|10:00am||EUR||Services Sentiment (Jun)||14.2||14.3|
|1:00pm||EUR||German Harmonised Index of Consumer Prices YoY (Jun)||2.1%||2.2%|
|1:30pm||USD||Initial Jobless Claims (15 Jun)||220K||218K|
|1:30pm||USD||GDP Annualised (Q1)||2.2%||2.2%|
|2:30pm||GBP||MPC Member Haldane Speaks|
|3:45pm||USD||Fed's Bullard Speaks|
|5:00pm||USD||Fed Member Bostic Speaks|
|12:01am||GBP||Gfk Consumer Confidence (Jun)||-7||-7|