May expected to shed light on Brexit

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.

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/AUD 1.7095 1.7006 1.6165 4.95%
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

Time Currency Release Consensus Previous
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