Inflation, Uncertainty & Monetary Policy

Markets were short of hard data to drive movement; however, the dollar has been somewhat firmer over the previous 24 hours, rising versus both sterling and euro. The yen was also lifted, and the environment remains broadly risk-off amid growing geopolitical concerns. The euro faces medium-term headwinds from the German election result. The two dominant parties, CDU & SPD previously steadfast coalition allies, are still discounting a future coalition.

Previous Day's Market Highlights

Markets were short of hard data to drive movement; however, the dollar has been somewhat firmer over the previous 24 hours, rising versus both sterling and euro. The yen was also lifted, and the environment remains broadly risk-off amid growing geopolitical concerns. The euro faces medium-term headwinds from the German election result. The two dominant parties, CDU & SPD previously steadfast coalition allies, are still discounting a future coalition.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.1410 1.1417 1.0745 5.89%
GBP / USD 1.3494 1.3664 1.2777 6.49%
EUR / USD 1.1812 1.2093 1.1773 2.65%
GBP/AUD 1.7017 1.7050 1.6165 5.19%
GBP / NZD 1.8659 1.8742 1.7684 5.65%
GBP / CAD 1.6687 1.6728 1.5837 5.33%

Today's Market Highlights

Fed Chair Yellen speaks this afternoon (17:45 BST). Yellen will deliver a speech titled “Inflation, Uncertainty, and Monetary Policy" at the National Association for Business Economics Annual Meeting. Her comments will be closely watched for any subtle clues regarding future monetary policy.

The only event of note for sterling today is the High Street Lending data release (9:30 BST), this measures the number of new mortgages approved for August (MoM). Attention is primarily on Thursday’s Speech from Bank of England Governor Carney and the Current Account data on Friday.

Other data this afternoon is the US New Home Sales figure (15:00 BST) forecast at 585kversus a previous figure of 571k. This is a leading indicator of economic health due to the wide-reaching implications of the property market.

Today's Economic Calendar

Time Currency Release Consensus Previous
9:30 GBP BBA Mortgage Approvals (Aug) 41.700K 41.587K
n/a EUR Emmanuel Macron Speech 85m
13:00 EUR ECBs Praet Speech 85m
14:00 USD S&P/Case-Shiller Home Price Indicies (YoY) (Jul) 5.8% 5.7%
14:30 USD FOMC Member Master speech
15:00 USD New Home sales Change (MoM) (Aug) 3.3% -9.4%
17:45 USD Feds Yellen Speech