Previous Day's Market Highlights
Sterling rallied yesterday as the BoE’s decision to keep interest rates on hold was a closer call than expected. Three members dissented in favour of raising rates: Ian McCafferty and Michael Saunders joined Kristin Forbes, who leaves the MPC at the end of the month. The dissent comes as inflation accelerated to 2.9% in May.
The pound jumped over 0.7% against both the euro and the dollar. Sterling-euro hit 1.1450 for the first time since the election. Sterling’s gains against the Canadian dollar saw the rate eye but not break 1.7000, which it last hit on Monday.
The MPC meeting followed disappointing Retail Sales data, which saw sales fall from April to May and slow compared to the same period a year prior.
Euro-dollar fell towards 1.1140. The dollar strengthened after the Fed signalled Wednesday that it would start reducing its balance sheet later this year and may remain on track to hike interest rates for a third time. US Initial Jobless Claims and Philadelphia and New York manufacturing indices surprised to the upside. On the other hand, Industrial Production missed forecasts.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.1668||1.1732||1.1277||3.35%|
|GBP / USD||1.2769||1.3040||1.2635||3.11%|
|EUR / USD||1.1153||1.1290||1.1099||1.69%|
|GBP / NZD||1.7705||1.8899||1.7442||7.71%|
|GBP / CAD||1.6935||1.7710||1.6796||5.16%|
Today's Market Highlights
In the afternoon (13:30 BST), the US releases housing data, gains in which could offer the dollar support. The main Canadian release is Foreign Securities Purchases (13:30 BST).
While the economic calendar is quieter next week, UK politics will be in sharp focus. Brexit talks between the UK and the EU begin on Monday. The Queen’s Speech has been rescheduled from Monday 19 June to Wednesday 21 June.
Today's Economic Calendar
|10:00||GBP||Final CPI YoY (May)||1.4%||1.4%|
|10:00||EUR||Final Core CPI YoY (May)||0.9%||0.9%|
|13:30||USD||Building Permits MoM (May)||1.250M||1.228M|
|13:30||USD||Housing Starts MoM (May)||1.215M||1.172M|
|13:30||CAD||Foreign Securities Purchases||$15.13B|
|15:00||USD||Michigan Consumer Sentiment Index (Jun)||97.1||97.1|