Previous Day's Market Highlights
It was another day of sterling weakness amidst a light economic calendar that did little to shield the pound’s vulnerability to Brexit fears. Sterling hit new lows against both the dollar and the euro. Sterling-dollar fell below 1.29 for the first time since 31 August, 2017, while sterling-euro fell below 1.11 for the first time since mid-November. As the pound trades around one-year and nine-month lows, respectively, there is little out on the calendar to renew support ahead of Friday’s GDP and production data releases.
Elsewhere, the Reserve Bank of New Zealand kept interest rates on hold as was widely expected. The overall tone was dovish and indicated rates could stay on hold until 2020. This sent the kiwi tumbling, and sterling-kiwi gained over 1% overnight compared to levels seen prior to the announcement.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
The calendar is light this morning, but there are a few US releases to note in the afternoon session. The US releases Producer Price Index and Initial Jobless Claims data (13:30), which will be followed by a speech from Fed member Evans (14:30). A pick-up in PPI could broadly support the dollar ahead of tomorrow’s CPI data.
With little out from the UK today, the pound may remain subdued. The UK’s main data of the week comes tomorrow with the release of the first estimate of Q2 economic growth, manufacturing and industrial production, and the goods and total trade balances.
Today's Economic Calendar
|1:30pm||USD||Producer Price Index YoY (Jul)||3.4%||3.4%|
|1:30pm||USD||Core PPI YoY (Jul)||2.8%||2.8%|
|1:30pm||CAD||New Housing Price Index MoM (Jun)||0.1%||0.0%|
|2:30pm||USD||Fed's Evans Speaks|
|11:30pm||NZD||Business NZ PMI (Jul)|