Sterling Awaits Third PMI, Dollar Looks to Fed Minutes

Sterling came under pressure yesterday after Manufacturing PMI disappointed. The dollar was better bid against both the euro and the pound. Sterling-dollar fell back below 1.3000 and euro-dollar fell below 1.1400. Sterling-euro traded either side of 1.1400, briefly breaking towards 1.1420.

Previous Day's Market Highlights

Sterling came under pressure yesterday after Manufacturing PMI disappointed. The dollar was better bid against both the euro and the pound. Sterling-dollar fell back below 1.3000 and euro-dollar fell below 1.1400. Sterling-euro traded either side of 1.1400, briefly breaking towards 1.1420.
 
The Eurozone’s Unemployment Rate held at 9.3% versus forecasts of 9.2%. The dollarstrengthened as the ISM Manufacturing PMI jumped to 57.8 from 54.9.
 
The RBA kept interest rates on hold at 1.5% as expected. The Aussie fell as the RBA did not join other central banks in taking a more hawkish tone, referencing concerns over levels of household debt. This followed an above-forecast Retail Sales release.
 
The Japanese yen rallied overnight as a safe haven after North Korea reportedly fired an intercontinental ballistic missile.  

Today's Market Highlights

Today’s releases include UK Construction PMI (09:30 BST), which tends to have the least significant market impact. For the euro, attention will be on the Producer Price Index (10:00 BST) and speeches from the ECB’s Praet and Mersch (13:30, 16:40 BST).
 
Commodity currency traders will keep an eye on the Global Dairy Trade Price Index and Canada’s Manufacturing PMI (14:30 BST).
 
Today is Independence Day in the US.