Sterling-dollar Eyes Recent Lows

GBP/USD has dipped below 1.30 again. A quieter calendar could keep rates around current levels.

Previous Day's Market Highlights

Last week, exchange rate movement was relatively contained. Sterling-euro held within the 1.12-1.13 band. Sterling-dollar gave up the higher end of the 1.31-1.32 band to fall towards 1.30. Euro-dollar gave up the 1.17 and 1.16 levels.
 
On the calendar side of things, the Bank of England raised interest rates on Thursday to 0.75%, the highest since 2009, in a move that had been widely expected. The decision to do so was unanimous. However, gains were limited for the pound, which then fell further as the Bank remained cautious on the pace of future hikes. Elsewhere, US NonFarm Payrolls and wage growth were a bit lower than forecast on Friday. Trade tensions between the US and China continued to worsen.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.1241 1.1348 1.1163 1.63%
GBP/USD 1.2997 1.3363 1.2958 3.03%
EUR/USD 1.1562 1.1791 1.1575 1.83%
GBP/AUD 1.7576 1.7945 1.7556 2.17%
GBP/NZD 1.9278 1.9580 1.9198 1.95%
GBP/CAD 1.6899 1.7479 1.6874 3.46%

Today's Market Highlights

The week gets off to a quiet start today with little of note out on the calendar, which may see exchange rates remain around current levels. The pound continues to be vulnerable to Brexit uncertainty. Sterling-dollar has dipped back below 1.30 this morning, eyeing year-to-date lows around 1.2958.
 
Tomorrow morning, the Reserve Bank of Australia is expected to keep interest rates on hold. The calendar is set to remain fairly light this week, but there are some items to note. On Wednesday, the Reserve Bank of New Zealand is also expected to keep rates steady. Friday is the key day for the pound, with June production figures and the first estimate of Q2 GDP, while the US releases CPI data later that afternoon.

Today's Economic Calendar

Time Currency Release Consensus Previous
24hr CAD August Civic Holiday
9:30am EUR Sentix Investor Confidence (Aug) 13.5 12.1
11:30pm AUD AiG Performance of Construction Index (Jul) 50.6
5:30am AUD RBA Interest Rate Decisions 1.5% 1.5%
5:30am AUD RBA Rate Statement

Caxton