Previous Day's Market Highlights
With little out on the calendar yesterday, the pound ticked up from Friday’s lows as the euro pulled back from new highs. Sterling-euro briefly retested 1.1200 and sterling-dollarregained 1.3000. Euro-dollar continued to hold above 1.1600.
The IMF downgraded its forecasts for UK economic growth to 1.7% from 2.0%. Preliminary Eurozone Manufacturing and Services PMIs surprised to the downside, providing the eurowith little support.
US data were mixed as Manufacturing PMI rose more than forecast, while Services PMI met expectations and Existing Home Sales slowed.
Today's Market Highlights
The US releases additional housing data as well as Consumer Confidence (14:00, 15:00 BST), which markets will keep an eye on ahead of tomorrow’s Fed rate decision. The two-day meeting begins today.
While no interest rate changes are expected, traders will pay close attention to any forward guidance or change in tone, particularly if softer inflation looks like it may be weighing on the Fed’s expectations for a third hike this year. If it does, the dollar could weaken.
MPC Member Andy Haldane, who has typically been one of the more dovish members but last month struck a more hawkish tone, speaks this evening (18:00 BST) on the international monetary and financial system. Any hawkish comments could strengthen the pound.
Today's Economic Calendar
|11:00||GBP||CBI Industrial Trends Survey - Orders MoM (Jul)||12||16|
|14:00||USD||S&P/Case-Shiller Home Price Indices YoY (May)||5.8%||5.7%|
|14:00||USD||Housing Price Index MoM (May)||0.5%||0.7%|
|15:00||USD||Richmond Fed Manufacturing Index (Jul)||7||7|
|18:00||USD||MPC Member Haldane Speaks|
|23:45||NZD||Trade Balance YoY (Jun)||$-3.68B||$-3.75B|
|02:30||AUD||Consumer Price Index YoY (Q2)||2.2%||2.1%|
|02:30||AUD||RBA Trimmed Mean CPI YoY (Q2)||1.8%||1.9%|
|04:05||AUD||RBA Governor Lowe Speaks|