Previous Day's Market Highlights
Political uncertainties facing the UK government ahead of the next round of Brexit negotiations, starting Thursday, were in focus. These include the implications of recent sexual misconduct allegations and the resignation of the international development secretary, Priti Patel, on Wednesday.
This weighed on the pound during an otherwise largely quiet calendar day. Sterling-eurobriefly dipped below 1.1300 and sterling-dollar saw lows below 1.3100. The Canadian dollar had a muted reaction against the pound when EIA crude oil data showed that weekly inventories unexpectedly rose.
The RBNZ kept interest rates on hold at 1.75% and projected a rate hike in Q2 2019, sooner than previously anticipated, as inflation forecasts were revised higher. The kiwi dollar strengthened against the pound.
Today's Market Highlights
The quiet calendar continues. Traders will keep an eye on any headlines from the latest round of Brexit negotiations, which resume today and continue to pose a downside risk to the pound. The main release today is US Initial Jobless Claims (13:30 GMT), which may have limited impact barring any surprises. A low figure would continue to indicate a strengthening labour market.
Markets will also look for any clues as to the direction of policy during comments from the ECB’s Cœuré, who participates in a panel discussion (10:00, 13:00 GMT); VP Constancio, who will give the keynote address at a Financial Regulatory Outlook Conference (13:45 GMT; and Lautenschläger, who speaks at a conference on Monetary, Financial, and Prudential Policy Interactions in the Post-Crisis World (18:20 GMT).
Tomorrow, UK Manufacturing and Industrial Production data will be in focus.
Today's Economic Calendar
|10:00||EUR||ECB's Coeure Speaks|
|13:00||GBP||NIESR GDP Estimate 3M (Oct)||0.4%|
|13:30||USD||Initial Jobless Claims (3 Nov)||231K||229K|
|13:30||CAD||New Housing Price Index YoY (sep)||3.8%|
|13:45||EUR||ECB VP Constancio Speaks|
|18:00||EUR||German Buba President Weidmann Speaks|
|18:20||EUR||RBNZ Press Conference||ECB's Lautenschalger Speaks|
|00:30||AUD||RBA Monetary Policy Statement|