How far can Cable go?

Rates generally up across the board, predominately helped by a weaker US dollar.

Previous Day's Market Highlights

There was a subdued tone to financial markets yesterday, this partly reflected a lack of major data/events over the past 24 hours.

The dollar resumed its downward trend yesterday, with the market pushing back up to the pre-Brexit highs. The currency was not helped by concerns a congressional impasse may result in a government ‘shutdown’. Meantime, there was no further pressure on the euro, after less hawkish sounding ECB comments pushed it lower on Wednesday. 

In level terms, the weaker tone to the dollar saw the EUR/USD pair push above 1.22. Cable (GBP/USD) opens this morning up near its post-Brexit vote high, just above 1.3900.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.1344 1.1360 1.1197 1.43%
GBP/USD 1.3929 1.3943 1.3331 4.39%
EUR/USD 1.2278 1.2327 1.1817 4.14%
GBP/AUD 1.7354 1.7486 1.7098 2.22%
GBP/NZD 1.9044 1.9217 1.8613 3.14%
GBP/CAD 1.7280 1.7308 1.6757 3.18%

Today's Market Highlights

In the morning session we start proceedings with UK Retail Sales data m/m (9.30am), forecasted to show a -0.8% change.  If correct we could a downtick on the improved levels we have seen over the last two days.

In the afternoon session we have the release of Canadian Manufacturing Sales m/m (1.30pm), which is expected to rise by 1.9%.  This will then be followed by US Prelim UoM Consumer Sentiment (3pm) and a Speech by FOMC Quarles (5.15pm). 

Today's Economic Calendar

Time Currency Release Consensus Previous
09:30 GBP Retail Sales ex-Fuel (MoM) (Dec) -0.8% 1.2%
09:30 GBP Retail Sales ex-Fuel (YoY) (Dec) 3.0% 1.5%
09:30 GBP Retail Sales (YoY) (Dec) 3.0% 1.6%
09:30 GBP Retail Sales (MoM) (Dec) -0.6% 1.1%
13:30 CAD Canadian portfolio investment in foreign securities (Sep)
17:15 USD Fed's Quarles speech

Caxton