Previous Day's Market Highlights
Yesterday saw a mixed UK employment report. Wage growth slowed, although by less than forecast, but continues to lag inflation. The Unemployment Rate held at 4.3%, the lowest levels since 1975. Sterling-euro briefly dipped below 1.1100, which it last hit on 20 October. Sterling-dollar fell back towards 1.3140 from earlier highs around 1.3200.
In the afternoon session, the dollar initially softened against the pound and euro around mixed CPI and Retail Sales figures but later recovered ground. Euro-dollar corrected lower after hitting a nearly five-week high above 1.1860, whilst sterling-dollar held above the reclaimed 1.3150.
The Aussie made gains overnight after employment data showed the Unemployment Rate had fallen to 5.4%, the lowest since 2013, and full-time jobs increased, although Employment Change slowed to 3.7K. As in the UK, wage growth remains a point of concern.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.1166||1.1451||1.1083||3.21%|
|GBP / USD||1.3145||1.3321||1.3039||2.12%|
|EUR / USD||1.1771||1.1858||1.1553||2.57%|
|GBP / NZD||1.9182||1.9433||1.8437||5.13%|
|GBP / CAD||1.6789||1.7171||1.6383||4.59%|
Today's Market Highlights
The busy UK calendar week wraps up today with October Retail Sales (09:30 GMT), which are forecast to pick up 0.1% from September but decline compared to the same period last year. Mixed figures may again leave the risk tilted to the downside.
Final Eurozone CPI is expected to confirm that headline inflation slowed to 1.4% in October from 1.5% in September. The euro could weaken if the core figure is revised lower.
This afternoon sees US Initial Jobless Claims, forecast to dip, as well as Import and Export Prices, the Philadelphia Fed Manufacturing Survey, and Industrial Productionfigures (13:30, 14:15 GMT). A gain in Industrial Production could offer the dollar support.
The Bank of England is holding its Future Forum in Liverpool to discuss progress on making its work more accessible through education. The day’s speakers include BoE Governor Carney and MPC Members Broadbent and Cunliffe.
The Fed’s Mester (14:10 GMT), Brainard, Kaplan, and Williams are amongst the afternoon’s speakers. Markets will look for any further clues as to the board’s thoughts on a December rate hike ahead of next month’s meeting.
Today's Economic Calendar
|09:30||GBP||Retail Sales MoM (Oct)||0.1%||-0.8%|
|09:30||GBP||Core Retail Sales MoM (Oct)||0.0%||-0.7%|
|09:30||GBP||Retail Sales YoY (Oct)||-0.6%||1.2%|
|09:30||GBP||Core Retail Sales YoY (Oct)||-0.4%||1.6%|
|10:00||EUR||Final CPI YoY (Oct)||1.4%||1.4%|
|10:00||EUR||Final Core CPI YoY (Oct)||0.9%||1.1%|
|13:30||USD||Initial Jobless Claims (10 Nov)||235K||239K|
|13:30||USD||Import Price Index YoY (Oct)||2.5%||2.7%|
|13:30||USD||Philadelphia Fed Manufacturing Survey (Nov)||25.0||27.9|
|13:30||CAD||Foreign Securities Purchases||$10.68B||$9.85B|
|14:00||GBP||BoE Governor Carney & MPC Members Cunliffe & Broadbent Speak|
|14:10||USD||Fed's Mester Speaks|
|14:15||USD||Industrial Production MoM (Oct)||0.5%||0.3%|
|15:00||USD||NAHB Housing Market Index (Nov)||68||68|
|17:30||USD||Fed's Kaplan Speaks|
|20:00||EUR||ECB's Constancio Speaks|
|21:30||NZD||Business NZ PMI (Oct)||57.5|
|21:45||USD||Fed's Williams Speaks|