Sterling Hits New Lows Against the Dollar

GBP/USD has hit a new low since September. Canadian data is in focus this afternoon.

Previous Day's Market Highlights

Cable fell below 1.30 yesterday for the first time since 5 September, 2017. This followed another batch of under-forecast UK data as Retail Sales unexpectedly contracted month-on-month. Sterling weakness was seen across the board, and it fell below 1.12 against the euro.
 
However, it fared better elsewhere, recovering morning losses as a stronger US dollar weighed on the commodity currencies. Weekly US Jobless Claims fell to 207K, the lowest since 1969. Euro-dollar briefly fell below 1.16. The dollar later came under pressure after President Trump criticised rising interest rates and dollar strength.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.1172 1.1426 1.1164 2.29%
GBP/USD 1.3020 1.3363 1.2958 3.03%
EUR/USD 1.1655 1.1791 1.1527 2.24%
GBP/AUD 1.7670 1.7981 1.7569 2.29%
GBP/NZD 1.9271 1.9622 1.9155 2.38%
GBP/CAD 1.7259 1.7791 1.7169 3.50%

Today's Market Highlights

Sterling remains under pressure this morning, again testing the 1.30 level. Overall, it’s a relatively quiet calendar day as the UK’s Public Sector Net Borrowing came in higher than forecast but had a muted impact on the pound. Brexit uncertainty continues to pose a risk to the pound’s strength.
 
The afternoon calendar is all about the Canadian dollar. Retail Sales are forecast to have recovered and CPI to have picked up, both of which could lend support to the loonie (13:30). The main event next week is the European Central Bank meeting, which investors will watch for any updates on the ECB’s inflation and interest rate expectations.

Today's Economic Calendar

Time Currency Release Consensus Previous
9:30am GBP Public Sector Net Borrowing (Jun) £3.500B £3.356B
1:30pm CAD Retail Sales MoM (May) 1.1% -1.2%
1:30pm CAD Core Retail Sales MoM (May) 0.7% -0.1%
1:30pm CAD Consumer Price Index YoY (Jun) 2.4% 2.2%
1:30pm CAD Bank of Canada Core CPI YoY (Jun) 1.4% 1.3%
1:30pm CAD BoC Core CPI YoY (Jun) 22.0 19.9

Caxton