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 / 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
|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%|