Previous Day's Market Highlights
The dollar remained under selling pressure and the pound continued to firm. This saw cable surpass Thursday’s BoE-driven spike to hit 1.4240, a new high since 2 February. This is not too far off the 25 January highs of 1.4346, which marked not only the rate’s highest levels so far this year, but also its highest levels since the referendum. Sterling-euro continued to trade above 1.14 and euro-dollar regained 1.24 to test one-month highs.
Against the Aussie, the pound hit a new high since the referendum above 1.84. Sterling inched closer to recent highs against the New Zealand and Canadian dollars but failed to breach them.
Recent support for sterling has stemmed from anticipation of a BoE rate hike as soon as May and more positive Brexit sentiment after the EU approved a transition period. Brexit sentiment remains highly vulnerable to the latest headlines.
On the dollar side, selling pressure continued despite reports that the US and China are seeking trade solutions, which gave US equities some relief.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
Sterling has softened this morning given EUR and USD demand, which has seen the pound dip below 1.14 against the euro and 1.42 against the dollar. Data out today include the Eurozone’s latest Economic Sentiment Indicator, Business Climate, and Consumer Confidence figures (10:00 BST) and the US S&P/Case-Shiller Home Price Indices (14:00 BST). Given that the releases are mid-level, the currency market reaction may be limited.
Fed Member Bostic speaks this afternoon (16:00 BST). Last week, Bostic said he thought two additional hikes could be appropriate and he is unlikely to have substantially changed his thinking since then. Bostic is speaking at the Hope Global Forums Annual Meeting.
Today's Economic Calendar
|10:00||EUR||Economic Sentiment Indicator (Mar)||113.4||114.1|
|10:00||EUR||Consumer Confidence (Mar)||0.1||0.1|
|14:00||USD||S&P/Case-Shiller Home Price Indices YoY (Jan)||6.2%||6.2%|
|16:00||USD||Fed Member Bostic Speaks|