Previous Day's Market Highlights
Heightened tensions between the US and North Korea yesterday weighed on stock markets and sparked a flight to safe havens, including gold and the Swiss franc. The VIX, an index measuring the market’s volatility expectations, rose to one-month highs.
Sterling-euro recovered ground but held below 1.1100. Sterling-dollar traded either side of 1.3000. Euro-dollar held below 1.1800.
Positive housing data and a greater-than-expected decline in weekly EIA Crude Oil Inventories had limited impact on the Canadian dollar, which lost ground to the pound across the course of the afternoon.
The RBNZ kept interest rates on hold at 1.75% as was widely expected. After initial strength, the kiwi fell against the pound as the Bank’s statement and later comments from Governor Wheeler and Assistant Governor McDermott referenced the need for a lower NZD. Sterling-kiwi rose to one-week highs.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.1059||1.1438||1.1003||3.80%|
|GBP / USD||1.2975||1.3272||1.2890||2.88%|
|EUR / USD||1.1732||1.1912||1.1370||4.55%|
|GBP / NZD||1.7831||1.7994||1.7398||3.31%|
|GBP / CAD||1.6502||1.6727||1.6238||2.92%|
Today's Market Highlights
The UK releases production and trade data this morning (09:30 BST). A pick-up in Manufacturing and Industrial Production and a narrower trade deficit in June may offer the pound some support, although limited gains may in turn see limited sterling strength. The greater risk may be to the downside if the data disappoint given sterling’s current vulnerability.
The US’s Producer Price Index and Initial Jobless Claims will be in focus ahead of tomorrow’s key CPI release (13:30 BST). Fed Member Dudley speaks this afternoon on regional wage inequality (15:00 BST).
The key release of the week for the US is Friday’s CPI data. The recent softening of inflation has weighed on rate hike expectations and will be closely watched by markets and the Fed alike.
Today's Economic Calendar
|09:30||GBP||Manufacturing Production YoY (Jun)||0.6%||0.4%|
|09:30||GBP||Manufacturing Production MoM (Jun)||0.0%||-0.2%|
|09:30||GBP||Industrial Production YoY (Jun)||-0.1%||-0.2%|
|09:30||GBP||Industrial Production MoM (Jun)||0.1%||-0.1%|
|09:30||GBP||Goods Trade Balance (Jun)||£-11.000B||£-11.863B|
|09:30||GBP||Total Trade Balance (Jun)||£-2.500B||£-3.073B|
|13:00||GBP||NIESR GDP Estimate 3M (Jul)||0.3%||0.3%|
|13:30||USD||Producer Price Index YoY (Jul)||2.2%||2.0%|
|13:30||USD||Core Producer Price Index YoY (Jul)||2.1%||1.9%|
|13:30||USD||Initial Jobless Claims (Aug 4)||240K||240K|
|13:30||CAD||New Housing Price Index MoM (Jun)||0.4%||0.7%|
|15:00||USD||Fed's Dudley Speaks|
|23:30||NZD||Business NZ PMI (Jul)||56.2|
|00:30||AUD||RBA Governor Lowe Speaks|