Previous Day's Market Highlights
After gaining in the morning, the pound pulled back in the afternoon session. Sterling-eurocontinued to hold above 1.13 but sterling-dollar fell back below 1.40 as the dollar strengthened. Recent support for the pound has stemmed from rising expectations of a BoE rate hike and speculation of a potentially softer Brexit. The latter came into focus again as Labour leader Jeremy Corbyn supported staying in a customs union with the EU.
Euro-dollar met resistance around 1.2350, falling back below 1.23 in the afternoon. Sterling- Aussie tested 1.79, sterling-kiwi tested 1.92, and sterling-loonie tested 1.78, before the pairings met resistance.
Fed Member Bullard was upbeat on the economic outlook but cautioned against raising interest rates too quickly. Quarles supported gradually raising interest rates.
Today's Market Highlights
The euro is in focus during the first half of the day with the release of February’s Economic Sentiment Indicator and Consumer Confidence figures (10:00 GMT), followed by German CPI figures.
Of the mid-level economic releases out of the US, the main one is Durable Goods Orders, forecast to have contracted in January (13:30 GMT). However, attention will primarily be on new Fed Chair Powell’s semi-annual testimony from 13:30 GMT.
Canadian dollar traders will keep an eye on this evening’s Annual Budget Release (21:00 GMT) for any fiscal policies with ramifications for monetary policy. Overnight figures are projected to show that Consumer Confidence in the UK worsened in February, according to the latest Gfk release.
Today's Economic Calendar
|10:00||EUR||Economic Sentiment Indicator (Feb)||114.0||114.7|
|10:00||EUR||Consumer Confidence (Feb)||0.1||0.1|
|13:00||EUR||German Harmonised Index of Consumer Prices YoY (Feb)||1.3%||1.4%|
|13:30||USD||Fed Chair Powell Speaks|
|13:30||USD||Durable Goods Orders (Jan)||-2.2%||2.8%|
|13:30||USD||Core Durable Goods Orders (Jan)||0.4%||0.7%|
|14:00||USD||Housing Price Index MoM (Dec)||0.4%||0.4%|
|21:00||CAD||Annual Budget Release|
|00:01||GBP||Gfk Consumer Confidence (Feb)||-11||-9|