Rebound for Sterling

Raab's letter to Parliament teases Brexit deal deadline

Previous Day's Market Highlights

The US posted their ADP non-farm employment change number, which printed at 227 vs 188 forecast, helping the Dollar to its 16-month high. The US employment cost index for Q3 also exceeded expectations. Overall, the data from the US adds to the strong macro of the economy. This adds credence to the Fed’s inflation outlook and its interest rate projections, which in turn is helpful to the dollar.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.1339 1.1463 1.1172 2.54%
GBP/USD 1.2882 1.3257 1.2693 4.25%
EUR/USD 1.1360 1.1620 1.1302 2.74%
GBP/AUD 1.8024 1.8735 1.7871 4.61%
GBP/NZD 1.9508 2.0481 1.9338 5.58%
GBP/CAD 1.6905 1.7286 1.6635 3.77%

Today's Market Highlights

In early morning trading, the Dollar has weakened off past its month end bullish run. As we head into November, investors are shifting their focus to the US midterms around the corner. This could be a very tricky time for the dollar as there is an element of uncertainty in the result. A not so ‘super’ BoE meeting today looks to have another predictable outcome of 0-0-9, however investors will be keeping a close eye to the inflation report which follows and will look to any further indication surrounding the Brexit deal/deadline. Carney will then follow with a press conference. One thing to watch from the meeting is whether Carney starts getting specific on any risks towards a no-deal Brexit scenario. As the risk of a no-deal increases, businesses are going to become increasingly nervous. All this is going to weigh further on the GBP. The first of the UK’s PMI figures comes out at 9:30am, the US then follow suit in the afternoon with their ISM manufacturing figure.

Today's Economic Calendar

Time Currency Release Consensus Previous
09:30 GBP Manufacturing PMI 53.0 53.8
12:00 GBP BoE Interest Rate Decision 0.75% 0.75%
12:30 GBP BoE Gov. Carney Press Conference
14:00 USD ISM Manufacturing PMI 59.0 59.8