Previous Day's Market Highlights
The pound rallied once again as August Retail Sales surprised to the upside. Year-on-year, Retail Sales rose 3.3% versus forecasts of 2.3% growth. Sales were up month-on-month as well, contrary to forecasts for a decline. Subsequent gains saw sterling break 1.13 against the euro for the first time since mid-July and test 1.33 against the dollar, the highest levels since early July. However, cable failed to break the psychological 1.33 barrier. A softer dollar helped euro-dollar regain 1.17.
However, it was a similar story as on Wednesday: data-driven gains were later pared off the back of the latest Brexit headlines from Salzburg as EU leaders rejected Prime Minister May’s Chequers proposals.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
Sterling is under pressure this morning on the latest Brexit headlines. Euro-dollar briefly hit 1.18 earlier this morning for the first time since mid-June, before falling back below the 1.18 handle on mixed flash PMIs from the Eurozone.
The main data releases of the day are this afternoon’s Canadian CPI and Retail Salesfigures (13:30 BST), which could present a mixed bag and therefore little clear price direction. Inflation is forecast to have softened but Retail Sales to have recovered after last month’s decline. Markets will also keep an eye on the latest trade headlines.
Highlights next week include a widely expected Fed rate hike, final estimates of Q2 GDP from the US and the UK, and preliminary September inflation figures for the Eurozone.
Today's Economic Calendar
|9:30am||GBP||Public Sector Net Borrowing (Aug)||£2.850B||£-2.872B|
|12:00||GBP||BoE Quarterly Bulletin|
|13:30||CAD||Retail Sales MoM (Jul)||0.4%||-0.2%|
|13:30||CAD||Core Retail Sales MoM (Jul)||0.6%||-0.1%|
|13:30||CAD||CPI YoY (Aug)||2.8%||3.0%|
|13:30||CAD||BoC Core CPI YoY (Aug)||1.4%||1.6%|
|14:45||USD||Prelim Markit Manufacturing PMI (Sep)||55.0||54.7|
|14:45||USD||Prelim Markit Services PMI (Sep)||55.0||54.8|