Previous Day's Market Highlights
The pound rallied yesterday as the ONS revised up a measure of labour cost inflation, which investors view as supporting the possibility of a BoE rate hike. Additional support stemmed from an easing in concerns over a challenge to the Tory leadership. Sterling-dollar regained 1.3100 and sterling-euro briefly broke 1.1200.
The Turkish lira plummeted as tensions with the US rose and both countries suspended visa services.
Yesterday was a holiday in both the US and Canada, which contributed to US dollar weakness, as did speculation that new members next year might lead to a less hawkish Fed.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.1156||1.1433||1.1008||3.72%|
|GBP / USD||1.3188||1.3664||1.3027||4.66%|
|EUR / USD||1.1821||1.2033||1.1669||3.03%|
|GBP / NZD||1.8660||1.8742||1.8177||3.01%|
|GBP / CAD||1.6510||1.6798||1.6007||4.71%|
Today's Market Highlights
Fed speakers include Evans, in Zurich (12:15 BST), and non-voter Williams, who will speak on community leaders (19:40 BST). Investors are awaiting the release of September’s meeting minutes (19:00 BST), which combined with a quieter calendar could limit market moves today.
Investors will look for any additional guidance on the Fed’s inflation expectations. Inflation data remains key for December rate hike expectations. The latest CPI release is this Friday.
This evening, the ECB’s Praet speaks at the SUERF conference on Globalisation Dynamics (19:50 BST). His speech is titled “Maintaining price stability with unconventional monetary policy measures”.
Today's Economic Calendar
|12:15||USD||Fed's Evans Speaks|
|15:00||USD||JOLTS Job Openings (Aug)||6.125M||6.170M|
|19:00||USD||Fed Meeting Minutes|
|19:40||USD||Fed's Williams Speaks|
|17:00||EUR||Catalan Parliament Session|
|19:50||EUR||ECB's Praet Speaks|
|01:00||AUD||Consumer Inflation Expectations (Oct)||3.8%|
|01:30||AUD||Home Loans (Aug)||0.5%||2.9%|