Previous Day's Market Highlights
Sterling remained vulnerable ahead of Thursday's election. While a Conservative win is still expected by many investors, markets have become less confident in the outcome as the Tory lead in polls narrowed. Of note will be not just whether the Conservatives win, but by what margin they do so.
The pound reversed initial gains to ease lower over the course of the day. Sterling-dollar met a nearly two-week high around 1.2950 before falling below 1.2900. Sterling-euro briefly tested 1.1500 before falling towards 1.1420.
Euro-dollar continued to trade above 1.1200. The dollar lost its morning gains against the euro during its afternoon session. The pound lost ground against the commodity currencies as well.
Q1 Australian GDP, out overnight, met expectations at 0.3%, rising more than forecast on an annual basis. The Aussie strengthened, pushing below 1.7200 against the pound. Some investors had speculated the releases could fall short of expectations after recent data disappointed.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.1452||1.1929||1.1360||4.77%|
|GBP / USD||1.2905||1.3048||1.2768||2.15%|
|EUR / USD||1.1269||1.1283||1.0839||3.94%|
|GBP / NZD||1.7935||1.8964||1.7935||5.43%|
|GBP / CAD||1.7339||1.7822||1.7195||3.52%|
Today's Market Highlights
The calendar is fairly quiet today. Releases out this afternoon include Canadian BuildingPermits (13:30 BST) and weekly Crude Oil Inventories (15:30 BST).
Markets may trade cautiously today as investors await a busy Thursday. Former FBI director James Comey testifies, the ECB is expected to keep monetary policy on hold but strike a dovish tone, and the UK holds its highly anticipated election.
Today's Economic Calendar
|13:30||CAD||Building Permits MoM (Apr)||2.4%||-5.8%|
|15:30||USD||EIA Crude Oil Inventories||-3.464M||-6.428M|