Previous Day's Market Highlights
Markets were quieter yesterday given a light data calendar and as the US celebrated the Thanksgiving holiday. Sterling largely maintained the 1.3300 level against the softer dollar but drifted lower against a stronger euro. The euro inched higher against the dollar above 1.1800.
The euro gained in part off the back of a swathe of above-forecast Manufacturing and Services PMI figures. The pound was little changed as the second estimate of GDP growth left the Q3 figures unrevised at 0.4% q/q and 1.5% y/y.
The Canadian dollar fell on a disappointing Retail Sales print, reversing its earlier gains against the pound. Sales growth was slower than expected at 0.1%, whilst the previous month’s decline was revised up from 0.9% to 0.1%.
The kiwi traded in both directions but was largely unchanged on a mixed trade report, which saw the trade deficit widen.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.1228||1.1451||1.1092||3.14%|
|GBP / USD||1.3302||1.3321||1.3039||2.12%|
|EUR / USD||1.1847||1.1858||1.1553||2.57%|
|GBP / NZD||1.9353||1.9537||1.8787||3.84%|
|GBP / CAD||1.6937||1.7171||1.6589||3.39%|
Today's Market Highlights
Items on the agenda include preliminary US Markit PMI figures, which could offer the dollar some support, although it is the ISM figures that tend to have the greatest impact. A quieter calendar and lighter liquidity following on from yesterday’s Thanksgiving holiday may keep the dollar relatively under pressure and market movement relatively constrained.
In Germany, the SPD has agreed to coalition talks with the CDU, Angela Merkel’s party. Any reduction of political uncertainty and end-of-week demand for the euro could see the single currency make further gains against the pound and the dollar.
ECB speakers include VP Constâncio and Benoît Cœuré, whose comments traders will eye for any clues as to the timing of future monetary policy adjustments. Otherwise, the comments may have limited effect.
Today's Economic Calendar
|12:30||EUR||ECB VP Constancio Speaks|
|14:45||USD||Markit Manufacturing PMI (Nov)||54.8||54.6|
|14:45||USD||Markit Services PMI (Nov)||55.5||55.3|
|14:45||USD||Markit Composite PMI (Nov)||55.2|
|55.2||EUR||ECB Coeure Speaks|