Sterling Ticks Up from Friday's Lows

The calendar was quieter Friday and markets calmer following the Thursday’s euro rally on the ECB press conference. Sterling-euro held below 1.1200 and euro-dollar remained above 1.1600.

Previous Day's Market Highlights

The calendar was quieter Friday and markets calmer following the Thursday’s euro rally on the ECB press conference. Sterling-euro held below 1.1200 and euro-dollar remained above 1.1600.
 
The Canadian dollar strengthened on Friday despite the expected slowdown in CPI to 1.0% and as core inflation picked up and Retail Sales surprised to the upside. Sterling-loonie hit a new low since late February.
 
The Aussie fell heading into Friday’s session after Deputy Governor Debelle downplayed recent RBA neutral interest rate discussions. 

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.1155 1.1438 1.1122 2.76%
GBP / USD 1.2990 1.3127 1.2706 3.21%
EUR / USD 1.1645 1.1684 1.1172 4.38%
GBP/AUD 1.6386 1.7107 1.6269 4.90%
GBP / NZD 1.7478 1.7994 1.7338 3.65%
GBP / CAD 1.6285 1.6978 1.6238 4.36%

Today's Market Highlights

Sterling eased off Friday’s lows as the week’s trading began. This morning, German and Eurozone Manufacturing and Services PMIs surprised to the downside. The releases may have contributed to the euro’s morning easing back against both the pound and the dollar, but the market impact is typically relatively limited.
 
In the afternoon, the US also releases preliminary PMIs. A gain in the manufacturingindex could offer the dollar some support. The dollar has been broadly under pressure recently on the back of concerns over the path of interest rates following a recent slowdown in inflation and over Trump’s ability to pass tax reforms.
 
The highlights this week are Wednesday’s Fed interest rate decision—no changes are expected but updated guidance will be closely watched—and preliminary estimates of Q2GDP from both the UK and the US, out Wednesday and Friday, respectively. 

Today's Economic Calendar

Time Currency Release Consensus Previous
13:30 CAD Wholesale Sales MoM (May) 0.5% 1.0%
14:45 USD Preliminary Markit Manufacturing PMI (Jul) 52.1 52.0
14:45 USD Preliminary Markit Services PMI (Jul) 54.1 54.2
15:00 USD Existing Home Sales MoM (Jun) 5.58M 5.62M