Previous Day's Market Highlights
Sterling picked up yesterday as mixed UK Retail Sales surprised to the upside and markets digested slightly positive headlines regarding upcoming discussions between EC President Tusk and PM May. The pound regained 1.1200 against the euro and continued gains against the dollar to re-test 1.3200.
Eurozone CPI figures confirmed headline inflation slowed to 1.4% in October. Core inflation was revised lower, below 1.0%. The slowdown contributed to sterling-euro’s gains. Euro-dollar held below 1.1800.
US weekly Initial Jobless Claims rose to 249K but held below the key 300K mark that is consistent with a strengthening labour market. Import and Export Prices slowed compared to September.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.1234||1.1451||1.1083||3.21%|
|GBP / USD||1.3242||1.3321||1.3039||2.12%|
|EUR / USD||1.1787||1.1858||1.1553||2.57%|
|GBP / NZD||1.9395||1.9433||1.8703||3.76%|
|GBP / CAD||1.6882||1.7171||1.6383||4.59%|
Today's Market Highlights
With the week’s UK data complete, attention today will be any additional Brexit headlines, which pose a downside risk, although any signs of progress could support the pound. The Eurozone’s latest Current Account figures showed a wider-than-forecast surplus.
The Canadian dollar will be in close focus with the release of October CPI (13:30 GMT). Softer inflation would likely weigh on expectations for an additional rate hike, thereby weighing on the loonie.
US releases are mid-level, with Building Permits and Housing Starts (13:30 GMT) to paint a picture of the housing market’s strength in October. A pick-up in both figures could strengthen the dollar.
Highlights to keep an eye on next week include the Fed’s November meeting minutes and the UK’s Autumn Budget.