Rates Steady, Sterling Ticks Higher

Sterling ticked higher as rates were largely steady yesterday. The Turkish lira weakened. Today's quiet calendar contains US New Home Sales.

Previous Day's Market Highlights

Overall, sterling was slightly firmer yesterday as exchange rates largely held around familiar levels. Euro-dollar continued to trade either side of 1.17, while sterling-euro traded around 1.12 and sterling-dollar made some gains above 1.31.
 
Data-wise, German PMIs surprised to the upside while the Eurozone indices were mixed, helping the euro to recover its pre-data losses. US Manufacturing and Services PMIs were also a mixed bag, contributing to some downwards pressure on the dollar. The kiwi softened overnight on disappointing trade data. The Aussie dropped on under-forecast Q2 CPI data, found headline inflation softer than forecast both quarter-on-quarter and year-on-year.
 
The Turkish lira tumbled yesterday after Turkey’s central bank kept interest rates on hold, disappointing investors who had expected rates to rise given high inflation. The lira fell around 3% against both the dollar and the pound.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.1259 1.1367 1.1163 1.79%
GBP/USD 1.3171 1.3363 1.2958 3.03%
EUR/USD 1.1698 1.1791 1.1527 2.24%
GBP/AUD 1.7785 1.7959 1.7569 2.17%
GBP/NZD 1.9352 1.9622 1.9155 2.38%
GBP/CAD 1.7310 1.7618 1.7168 2.55%

Today's Market Highlights

The relatively quiet calendar continues today. There are no major UK data releases, while the US will keep an eye New Home Sales (15:00 BST) and commodity currencies will take note of weekly EIA Crude Oil Inventories (15:30). The main focus for the euro this week is tomorrow’s ECB meeting.

Today's Economic Calendar

Time Currency Release Consensus Previous
3:00pm USD New Home Sales MoM (June) 0.670M 0.689M
3:30pm USD EIA Crude Oil Inventories (16 Jul) -2.331M 5.836M

Caxton