Markets Await Busy Wednesday

The dollar regained some ground on Friday. The calendar gets off to a quiet start ahead of a busy Wednesday.

Previous Day's Market Highlights

The dollar saw a bid tone Friday, which was further supported in the afternoon around above-forecast housing data, but it ultimately ended the week down against both the pound and the euro. The pound had a muted reaction to disappointing January Retail Sales. Sterling-dollar pulled back from above 1.41 and euro-dollar from above 1.25. As the euro moved lower, sterling-euro picked up slightly towards 1.13; it has traded in the 1.1210-1.1310 range since 9 February.  
 
Canada’s Foreign Securities Purchases were lower than projected, corresponding with a weaker Canadian dollar in the afternoon session. Sterling regained over 1% against the loonie over the course of the week.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.1288 1.1512 1.1221 2.53%
GBP/USD 1.4012 1.4346 1.3763 4.06%
EUR/USD 1.2412 1.2556 1.2206 2.79%
GBP/AUD 1.7692 1.7861 1.7336 2.94%
GBP/NZD 1.8973 1.9466 1.8942 2.69%
GBP/CAD 1.7580 1.7646 1.7296 1.98%

Today's Market Highlights

Today is President’s Day in the US. The economic calendar is light; releases include the Eurozone’s lower-than-forecast December Current Account surplus and New Zealand’s Producer Price Index (21:45 GMT). BoE Governor Carney speaks this evening (18:45 GMT), but a topic of leadership and values may have a muted market reaction barring any monetary policy insights. Overnight, the RBA releases its latest meeting minutes. Given the RBA’s relatively dovish tone recently, this could pose a risk to the Aussie dollar.
 
It’s a slow start to the week with only preliminary Eurozone Consumer Confidence and ZEW Economic Sentiment figures from the Eurozone and Germany of note tomorrow, but things pick up on Wednesday with UK employment data, the BoE’s Inflation Report hearing, and the US Fed meeting minutes. The next estimate of Q4 UK GDPECB meeting accounts, and Canadian Retail Sales will be of interest on Thursday, with final Eurozone CPI and Canadian CPI rounding out the calendar on Friday.  
 
As always, Brexit headlines and domestic politics will remain key drivers for the pound, so investors will keep an eye out for any surprise headlines. Traders will also keep an eye on equities for further volatility.  

Today's Economic Calendar

Time Currency Release Consensus Previous
24hr USD Bank Holiday
09:00 EUR Current Account s.a. (Dec) €30.5B €32.5B
10:00 EUR Construction Output s.a. MoM (Dec) -0.7% 0.5%
18:45 GBP BoE Governor Carney Speaks
21:45 NZD Producer Price Index - Input QoQ (Q4) 0.3% 1.0%
22:15 AUD RBA Assistant Governor Bullock Speaks
00:30 AUD RBA Meeting Minutes

Caxton