Sterling Remains Subdued Today

Sterling has tested new recent lows against the euro and dollar and remains subdued overall. The calendar is again fairly quiet today.

Previous Day's Market Highlights

Euro-dollar regained 1.16 as the euro strengthened. Sterling-euro fell back below 1.12 to eke out a new low since November by Wednesday morning. Otherwise, movements were relatively contained. The pound failed to regain 1.30 against the US dollar as it traded at some of its lowest levels since September, and it lost further ground against the Aussie and kiwi dollars. The Canadian dollar weakened on tensions between Canada and Saudi Arabia.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.1137 1.1342 1.1132 1.85%
GBP/USD 1.2936 1.3293 1.2920 2.81%
EUR/USD 1.1615 1.1758 1.1530 1.94%
GBP/AUD 1.7426 1.7945 1.7409 2.99%
GBP/NZD 1.9166 1.9580 1.9154 2.18%
GBP/CAD 1.6908 1.7469 1.6793 3.87%

Today's Market Highlights

The calendar remains fairly quiet today, and as a result the pound may remain vulnerable with exchange rates continuing to trade around recent levels. Fed Member Barkin will speak at a town hall event in Virginia (13:45 BST), which markets will keep an eye on for any updated monetary policy clues. The speech may have limited market impact if it provides little new information. Markets will continue to keep an eye on the latest trade headlines.
 
The Reserve Bank of New Zealand is widely expected to keep interest rates on hold at 1.75% when it announces its decision this evening. Interest rates have been on hold since November 2016.

Today's Economic Calendar

Time Currency Release Consensus Previous
1:45pm USD Fed Member Barkin Speaks
3:30pm USD EIA Crude Oil Inventories (30 Jul) -1.174M 3.803M
10:00pm NZD RBNZ Interest Rate Decision 1.75% 1.75%
10:00pm NZD RBNZ Rate Statement
11:00pm NZD RBNZ Press Conference

Caxton