Previous Day's Market Highlights
The dollar remained broadly weak but saw a slight pull-back against the pound towards 1.3950 from overnight tests of 1.40, while euro-dollar pulled back from 1.24 towards 1.2350. The euro was softer following cautious central bank comments, which helped sterling-euro test and finally break 1.13, if only briefly. Political uncertainties remain risks for the pound.
Elsewhere, US Retail Sales were a mixed bag, core sales rising compared to the previous month but not as much as expected, while headline sales again fell. This did little to support the dollar, which in the afternoon reversed earlier gains against the pound.
Looking at the commodity currencies, the pound continues to trade at its highest levels against the Canadian dollar since the referendum, although it fell back from a fresh high above 1.81. Sterling made gains against the kiwi dollar above 1.91 overnight after Q4 GDP came in below forecasts. It fared less well against the Australian dollar, initially reversing an overnight test of 1.78 to head back down towards 1.77.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
It’s a quieter day again today with the major US data of the week out of the way. Mid-level releases include NY and Philadelphia Manufacturing data and weekly Initial JoblessClaims, forecast to fall back below 230K and in any case stay well clear of the 300K level consistent with a strengthening labour market. Sterling will remain sensitive to any Brexit headlines ahead of next week’s EU Summit.
ECB speakers continue with a speech from Lautenschläger at the Florence School of Banking and Finance (15:45 GMT). New Zealand Business PMI figures could see some kiwi movement overnight. RBA Deputy Governor Debelle will later give a speech titled “Risk and return in a low rate environment”.
Tomorrow we’ll have final Eurozone CPI figures, which are expected to confirm that headline inflation slowed to 1.2%. US releases include housing and industrial production data.
Today's Economic Calendar
|12:30||USD||NY Empire State Manufacturing Index (Mar)||15.0||13.1|
|12:30||USD||Initial Jobless Claims (9 Mar)||226K||231K|
|12:30||USD||Philadelphia Fed Manufacturing Survey (Mar)||23.0||25.8|
|15:45||EUR||ECB's Lautenschlager Speaks|
|21:30||NZD||Business NZ PMI (Mar)||55.6|
|22:45||AUD||RBA Assist Gov Debelle Speaks|