Previous Day's Market Highlights
The dollar remained subdued around 11-day lows yesterday following Trump’s comments against the Fed’s rate hikes. Sterling-dollar traded around 1.28 and euro-dollar around 1.15. Further greenback softness overnight enabled cable to breach 1.29 to hit its highest levels since 8 August.
The calendar was again fairly light. Public Sector Net Borrowing came in slightly better than forecast and saw some sterling strength but overall had a limited impact on the pound.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
Sterling has seen some pressure this morning following Brexit headlines overnight regarding potential delays in negotiations, while the dollar has seen a bid tone. The Brexit news flow remains a downside risk for the pound.
The data calendar starts to pick up pace this afternoon after a slow start to the week. Canadian Retail Sales are forecast to slow notably, with core Sales projected to contract, and this could weaken the Canadian dollar. A slight tick higher in Existing Home Sales (15:00) could lend the dollar some support, but overall markets will be waiting for this evening’s release of the Fed’s meeting minutes (19:00).
Central banks will remain in focus later this week as bankers gather in Wyoming for the annual Jackson Hole Economic Symposium. The topic is “Changing Market Structure and Implications for Monetary Policy”. The agenda will be released overnight on 23 August.
Today's Economic Calendar
|1:30pm||CAD||Retail Sales MoM (Jun)||0.1%||2.0%|
|1:30pm||CAD||Core Retail Sales MoM (Jun)||-0.1%||1.4%|
|3:00pm||USD||Existing Home Sales MoM (JUl)||5.40M||5.38M|
|3:30pm||USD||EIA Crude Oil Inventories (17 Aug)||-1.533M||6.805M|
|7:00pm||USD||Fed Meeting Minutes|