JOLTS Jump Sparks Dollar Rally

Sterling-dollar fell below 1.3000 yesterday for the first time in around two weeks. An afternoon rally in the dollar was sparked by a jump in JOLTS job openings to a record high amidst an otherwise largely quiet data day.

Previous Day's Market Highlights

Sterling-dollar fell below 1.3000 yesterday for the first time in around two weeks. An afternoon rally in the dollar was sparked by a jump in JOLTS job openings to a record high amidst an otherwise largely quiet data day.
 
Sterling-dollar fell approximately 0.4% around the release, and euro-dollar dropped around 0.6%, falling below 1.1800 and later meeting resistance around 1.1765.
 
The pound remained under pressure after last week’s Bank of England meeting reduced rate hike expectations, and Brexit negotiations continue to pose a downside risk.
 
The South African rand fell over 1.5% against the pound after President Zuma survived the no-confidence vote. The rate regained 17.400 in overnight trading. 

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.1074 1.1438 1.1003 3.80%
GBP / USD 1.3007 1.3272 1.2812 3.47%
EUR / USD 1.1745 1.1912 1.1370 4.55%
GBP/AUD 1.6491 1.6842 1.6269 3.40%
GBP / NZD 1.7764 1.7994 1.7398 3.31%
GBP / CAD 1.6499 1.6727 1.6238 2.92%

Today's Market Highlights

Market sentiment was risk off after President Trump warned that North Korea would be met with “fire and fury” if it continues to threaten the US. Stock markets were down, while havens, including ten-year government bonds, gold, and the Japanese yen, saw gains.
 
Sterling picked up this morning as focus turned to the European session. Cable regained 1.3000.
 
The calendar is again quiet with respect to UK data. Mid-level US and Canadian data will be in focus this afternoon (13:30, 15:00 BST).  
 
The RBNZ is expected to keep interest rates on hold at 1.75% when it meets later today. A dovish tone may be seen following weaker-than-expected CPI and employment change figures since the last meeting, and this could weigh on the kiwi. 

Today's Economic Calendar

Time Currency Release Consensus Previous
13:15 CAD Housing Starts s.a. (YoY) 205.0K 212.7K
13:30 USD Preliminary Unit Labor Costs (Q2) 1.2% 2.2%
13:30 USD Preliminary Nonfarm Productivity (Q2) 0.7% 0.0%
13:30 CAD Building Permits MoM (Jun) -1.8% 8.9%
15:00 USD Wholsesale Inventories (Jun) 0.6% 0.6%
15:30 USD EIA Crude Oil Inventories (Aug 4) -2.720M -1.527M
22:00 NZD RBNZ Interest Rate Decision 1.75% 1.75%
22:00 NZD RBNZ Rate Statement & Monetary Policy Statement
23:00 NZD RBNZ Press Conference
02:00 AUD Consumer Inflation Expectations (Aug) 4.4%