Q2 GDP to Drive Dollar

The preliminary estimate of Q2 GDP in the US is the main release today.

Previous Day's Market Highlights

As was widely expected, the ECB kept interest rates on hold. Overall, the statement and accompanying comments were consistent with those made in June. The ECB has said that interest rates are expected to remain very low until “at least through the summer of 2019”. The euro was softer around the meeting.
 
Sterling-dollar gave up 1.32 and euro-dollar fell back below 1.17. Under-forecast US Durable Goods Orders did little to deter the dollar’s gains. Sterling-euro continued to trade in the 1.12-1.13 range.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.1244 1.1364 1.1163 1.77%
GBP/USD 1.3095 1.3363 1.2958 3.03%
EUR/USD 1.1646 1.1791 1.1562 1.94%
GBP/AUD 1.7724 1.7958 1.7569 2.17%
GBP/NZD 1.9308 1.9622 1.9198 2.16%
GBP/CAD 1.7106 1.7479 1.7106 2.13%

Today's Market Highlights

The dollar could see further gains today with the release of the first estimate of Q2 GDP(13:30 BST). A sharp acceleration from Q1’s 2% growth is projected, to 4.1%. Should the release fall short of expectations, the dollar could weaken. A quiet calendar otherwise may again keep exchange rates around familiar levels.
 
Next week, central banks will remain in focus. The Fed is expected to keep rates on hold at 2.00% on Wednesday, while the Bank of England meeting will be closely watched for a possible rate hike.

Today's Economic Calendar

Time Currency Release Consensus Previous
13:20 USD Fed's Bullard Speaks
13:30 USD GDP (Q2) 4.1% 2.0%
13:30 USD Core Personal Consumption Expenditures QoQ (Q2) 2.2% 2.3%
15:00 USD Michigan Consumer Sentiment Index (Jul) 97.1 97.1

Caxton