Previous Day's Market Highlights
There was a calmer tone yesterday after the markets digested Wednesdays busy calendar. The main move of note was the dollar retreating slightly from its post-Fed gains falling back slightly against the euro and sterling.
Having started the day lower, sterling strengthened against a basket of currencies as the market began to anticipate Prime Minister Theresa Mays landmark speech in Florence on Brexit.
The Australian dollar depreciated yesterday following a weaker tone on commodity markets. As such, this weighed heavy on commodity-linked currencies such as AUD. This, coupled with comments from RBA Governor Phillip Lowe suggesting that the central bank is a long way from tightening monetary policy dragged down the currency further.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.1359||1.1397||1.0745||5.72%|
|GBP / USD||1.3580||1.3664||1.2777||6.49%|
|EUR / USD||1.1956||1.2093||1.1773||2.65%|
|GBP / NZD||1.8595||1.8742||1.7684||5.65%|
|GBP / CAD||1.6730||1.6710||1.5837||5.22%|
Today's Market Highlights
Focus today lies with UK Prime Minister Theresa May’s speech in Florence, this afternoon. She will provide an update on the Brexit negotiations, with particular focus on the proposed financial implications and transitionary period. Any suggestion that she is softening her stance with the aim of breaking the negotiation deadlock will most likely see the pound strengthen. Failing to convince investors could see the recent gains reversed.
Eurozone data this morning registered positive gains in both services and manufacturing sectors which has seen GBP/EUR fall by 0.35% in this morning’s session. With ECB President Draghi currently speaking in Dublin, we could see further volatility throughout the morning.
Today's Economic Calendar
|10:30||EUR||ECB President Draghi's Speech|
|13:30||CAD||Consumer Price Index Core (YoY)||1.5%||1.2%|
|14:15||EUR||ECB Vice President Constancio speech|
|PM||GBP||Theresa May Speech|
|14:30||USD||FED's George Speech|