Previous Day's Market Highlights
After initially hitting new recent highs on more positive Brexit headlines and a softer US dollar, the pound saw some pullback across the board. However, rates overall continued to trade at familiar levels. Sterling-euro held above 1.12 while sterling-dollar temporarily fell back below 1.30. The pound broke 2.00 against the kiwi dollar for the first time in over two years.
On the data front, UK wage growth surprised to the upside, both including and excluding bonuses. The Unemployment Rate held at 4.0% as projected, whilst Claimant Count Change was lower than forecast. Sterling saw minor gains on the figures before heading lower.
As announced yesterday, Mark Carney will stay on as governor of the Bank of England until January 2020. While Carney had initially signed on to serve only five of an eight-year term, he had previously extended his term until June 2019. Carney’s extension provides stability during the Brexit period.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
It’s a quieter calendar day, with highlights including Eurozone Industrial Production (10:00 BST) and US Core Producer Price Index, an indicator of inflation (13:30). A further contraction in production could weigh on the euro while a little changed PPI figure could have a muted impact on the dollar. This afternoon, Fed member Brainard will be speaking on the economic outlook (17:45). Brexit headlines will remain a key driver for the pound.
Overnight, positive labour data, including a pick-up in Employment Change and the Unemployment Rate holding at its lowest since 2012, could see the Aussie dollar strengthen.
Tomorrow will be a busier calendar day with the latest policy decisions from the Bank of England and European Central Bank in focus. Whilst no policy changes are expected, markets will be keeping a close eye out for any updated guidance.
Today's Economic Calendar
|10:00am||EUR||Industrial Production s.a. MoM (Jul)||-0.5%||-0.7%|
|1:30pm||USD||Fed's Bullard Speaks|
|1:30pm||USD||Core Producer Price Index YoY (Aug)||2.7%||2.7%|
|3:30pm||USD||EIA Crude Oil Inventories (7 Sep)||-0.750M||-4.302M|
|5:45pm||USD||Fed's Brainard Speaks|
|7:00pm||USD||Fed's Beige Book|
|2:00am||AUD||Consumer Inflation Expectation (Sep)||4%|
|2:30am||AUD||Unemployment Rate s.a. (Aug)||5.3%||5.3%|
|2:30am||AUD||Employment Change s.a. (Aug)||26.7K||-3.9K|