Sterling Rallies on Hawkish Haldane

Sterling rallied around the time of the Queen’s Speech as the Bank of England’s typically dovish Chief Economist, Andy Haldane, said he saw a case for raising interest rates later this year. Sterling-dollar briefly broke 1.2700 having fallen below 1.2600 earlier in the day for the first time since PM May announced the snap election on 18 April.

Previous Day's Market Highlights

Sterling rallied around the time of the Queen’s Speech as the Bank of England’s typically dovish Chief Economist, Andy Haldane, said he saw a case for raising interest rates later this year. Sterling-dollar briefly broke 1.2700 having fallen below 1.2600 earlier in the day for the first time since PM May announced the snap election on 18 April.
 
Sterling-euro tested 1.1400 before falling back. Euro-dollar drifted higher towards 1.1170.
 
Oil prices fell further despite a drop in weekly EIA inventories as Libya and Nigeria announced supply increases. Brent crude fell below $45 a barrel. The Canadian dollar weakened against the pound on the release.
 
The RBNZ kept interest rates on hold at 1.75% as expected. The kiwi strengthened on the announcement, before retracing some of that ground. 

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.1349 1.1624 1.1277 2.99%
GBP / USD 1.2680 1.3018 1.2606 3.20%
EUR / USD 1.1171 1.1296 1.1109 1.66%
GBP/AUD 1.6785 1.7494 1.6612 5.04%
GBP / NZD 1.7471 1.8569 1.7414 6.22%
GBP / CAD 1.6898 1.7572 1.6721 4.84%

Today's Market Highlights

The calendar is quieter again today. The European Council meets 22-23 June. Topics on the agenda include a review of the latest Brexit negotiations. Markets will keep an eye on any headlines. Broadly speaking, Brexit negotiations pose a downside risk to the pound.
 
Afternoon releases include weekly Initial Jobless Claims and Canadian Retail Sales (13:30 BST). Fed Member Powell testifies before the US Senate Committee on Banking, Housing, and Urban Affairs (15:00 BST).
 
MPC Member Forbes, who leaves the MPC this month, speaks this evening at the London Business School (19:00 BST). Forbes was the first to vote in favour of hiking interest rates and was joined in her dissent this month by two other members. 

Today's Economic Calendar

Time Currency Release Consensus Previous
11:00 GBP CBI Industrial Trends Survey - Orders MoM (Jun) 7 9
13:30 USD Initial Jobless Claims (Jun 16) 240K 237K
13:30 CAD Retail Sales MoM (Apr) 0.2% 0.7%
13:30 CAD Core Retail Sales MoM (Apr) 0.7% -0.2%
14:00 USD Housing Price Index MoM (Apr) 0.5% 0.6%
15:00 USD Fed Member Powell Speaks
15:00 EUR Preliminary Consumer Confidence (Jun) -3.0 -3.3
19:00 GBP MPC Member Forbes Speaks