GBPUSD Holds Above 1.32, Awaits Construction Data

Sterling picked up around 0.2% against both the dollar and the euro yesterday morning on the back of an above-forecast Manufacturing PMI print. Sterling-euro temporarily broke 1.1200. Sterling-dollar largely held above 1.3200 and euro-dollar above 1.1800.

Previous Day's Market Highlights

Sterling picked up around 0.2% against both the dollar and the euro yesterday morning on the back of an above-forecast Manufacturing PMI print. Sterling-euro temporarily broke 1.1200. Sterling-dollar largely held above 1.3200 and euro-dollar above 1.1800.
 
US data offered the dollar little support. Personal spending and income slowed from May to June, as did the PCE deflator, although by less than forecast. The ISM Manufacturing PMI fell to 56.3 from 57.8, more than forecast.  
 
New Zealand’s Unemployment Rate fell to 4.8% from 4.9% as forecast. The kiwi dollar fell against the pound as the participation rate declined and average earnings grew more slowly than expected. The rate met resistance around 1.7800. 

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.1162 1.1438 1.1117 2.81%
GBP / USD 1.3215 1.3246 1.2812 3.28%
EUR / USD 1.1839 1.1847 1.1312 4.52%
GBP/AUD 1.6579 1.7107 1.6269 4.90%
GBP / NZD 1.7760 1.7994 1.7398 3.31%
GBP / CAD 1.6615 1.6856 1.6238 3.67%

Today's Market Highlights

A dip in the UK’s Construction PMI (09:30 BST) could weigh on the pound this morning, although the Construction index typically has the least significant market impact of the three PMIs. Attention for the UK this week is on tomorrow’s Bank of England meeting, especially any guidance on when the Bank might raise interest rates.
 
This afternoon’s highlight is the ADP Employment Change release (13:15 BST). A strong reading could support the dollar and increase expectations of a positive July jobs report on Friday. The Fed’s Mester and Williams, both non-voters this year, speak this evening.  

Today's Economic Calendar

Time Currency Release Consensus Previous
09:30 GBP Construction PMI (Jul) 54.5 54.8
10:00 EUR Producer Price Index MoM (Jun) -0.1% -0.4%
10:00 EUR Producer Price Index YoY (Jun) 2.5% 3.3%
13:15 USD ADP Employment Change (Jul) 190K 158K
15:30 USD EIA Crude Oil Inventories (Jul 28) -2.900M -7.208M
17:00 USD Fed Member Mester Speaks
20:30 USD Fed Member Williams Speaks
02:30 AUD Trade Balance (Jun) $1,800M $2,471M
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%