GBP/USD Holds One-Week Highs

Sterling-dollar continues to hold at one-week highs ahead of a speech from Carney and US data.

Previous Day's Market Highlights

Sterling-euro again held within the 1.13-1.14 band. Sterling-dollar gave up the 1.32 level ahead of the UK’s Services PMI release, but regained it after the print surprised to the upside. Euro-dollar lost ground within the 1.16-1.17 band. It last broke 1.17 on 26 June. Sterling made gains against the commodity currencies.
 
Otherwise it was a fairly quiet calendar day as the US celebrated Independence Day, and exchange rates reflected this.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.1319 1.1471 1.1247 1.95%
GBP/USD 1.3240 1.3473 1.3049 3.15%
EUR/USD 1.1697 1.1853 1.1510 2.89%
GBP/AUD 1.7948 1.7981 1.7472 2.83%
GBP/NZD 1.9540 1.9622 1.8925 3.55%
GBP/CAD 1.7401 1.7791 1.7168 3.50%

Today's Market Highlights

The schedule picks up pace again today. Bank of England Governor Carney speaks today (11:00 BST) in Newcastle. The tone of his comments will be key—an upbeat tone would be sterling positive, while a more cautious tone would likely weaken the pound.
 
In the afternoon, the US is back in focus with the release of ADP Employment Change (13:15). A stronger figure is expected in June than in May, which could strengthen the dollar ahead of Friday’s NonFarm Payrolls print. The US also releases the ISM Non-Manufacturing PMI (15:00) and, in the evening, the Fed’s June meeting minutes (19:00). The Fed raised rates in June, as expected, and projected a median of four hikes this year. Markets will look for further insight into the Fed’s outlook, and the risks to or likelihood of those additional two hikes being realised.

Today's Economic Calendar

Time Currency Release Consensus Previous
11:00am GBP BoE Governor Carney Speaks
1:15pm USD ADP Employment Change (Jun) 190K 178K
1:15pm EUR ECB's Mersch Speaks
1:30pm USD Initial Jobless Claims (30 Jun) 225K 227K
2:45pm USD Markit Services PMI (Jun) 55.4 56.5
3:00pm USD ISM Non-Manufacturing PMI (Jun) 58.3 58.6
4:00pm USD EIA Crude Oil Inventories (29 Jun) -3.538M -9.891M
7:00pm USD Fed Meeting Minutes

Caxton