Previous Day's Market Highlights
The dollar fell on Friday as September CPI disappointed expectations, adding to inflation uncertainties as the Fed considers whether to raise interest rates for a third time this year. However, it recovered ground on above-forecast Michigan Consumer Sentiment data and hawkish comments from Fed Chair Yellen on Sunday.
Sterling fluctuated on a lack of progress in Brexit talks and the possibility of a two-year transition deal. On Friday, sterling-euro held above 1.1200, hitting its highest levels in over a week. Sterling-dollar tested 1.3300 for the first time in nearly two weeks.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.1269||1.1433||1.1069||3.18%|
|GBP / USD||1.3279||1.3664||1.3027||4.66%|
|EUR / USD||1.1784||1.2033||1.1669||3.03%|
|GBP / NZD||1.8501||1.8742||1.8312||2.21%|
|GBP / CAD||1.6569||1.6798||1.6350||2.67%|
Today's Market Highlights
This week is set to be a busy one for the pound. Prime Minister May and Brexit Secretary Davis are in Brussels today ahead of Thursday’s EU Summit. A lack of progress in negotiations is a risk to the pound’s strength.
Tomorrow, the UK releases its latest inflation figures, with CPI expected to have hit at least 3.0% in September, and BoE Governor Carney testifies before the Treasury Select Committee. Other releases include wage and employment data on Wednesday and Retail Sales on Thursday.
Today’s calendar also includes the Eurozone’s August Trade Balance (10:00 BST), Canadian Foreign Securities Purchases (13:30 BST), and New Zealand’s Q3 CPIfigures (22:45 BST). A pick-up in inflation could strengthen the kiwi dollar this evening. The other releases may have limited market impact barring any surprises.
ECB Board Member Lautenschläger speaks at the George Washington University Law School this evening (19:00 BST). Any hawkish signals could strengthen the euro.
Today's Economic Calendar
|10:00||EUR||Trade Balance n.s.a. (Aug)||€23.3B||€23.2B|
|10:00||EUR||Trade Balance s.a. (Aug)||€20.3B||€18.6B|
|13:30||CAD||Foreign Securities Purchases (Aug)||$23.95B|
|13:30||USD||NY Empire State Manufacturing Index (Oct)||20.7||24.4|
|19:00||EUR||ECB's Lautenschlager Speaks|
|22:45||NZD||Consumer Price Index QoQ (Q3)||0.4%||0.0%|
|22:45||NZD||Consumer Price Index YoY (Q3)||1.8%||1.7%|
|01:30||AUD||RBA Meeting Minutes|