Previous Day's Market Highlights
Given the quiet calendar yesterday, exchange rates remained around familiar levels. Sterling-euro continued to trade around 1.12, while sterling-dollar held around the 1.31 level it had regained on Friday, when the dollar weakened on Trump’s comments, and euro-dollar edged lower towards 1.17.
US data were mixed. The Chicago Fed National Activity Index surprised to the upside, hitting its highest levels since February. On the other hand, Existing Home Sales rose by less than forecast. Eurozone Consumer Confidence beat expectations, holding steady at -6.
MPC Member Broadbent said the BoE could cut interest rates if inflationary pressures ease after QE is unwound. Broadbent also said he doesn’t know whether he would vote for a hike next week and wouldn’t say if he did. The pound was softer around the comments. Prime Minister May’s latest Brexit proposals for the City’s future relationship with the EU were rejected by Brussels ahead of MPs’ summer recess from 24 July.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
The dollar has seen a bid tone this morning while the euro has been softer ahead of the morning’s data, pushing sterling-dollar back below 1.31 and euro-dollar back below 1.17.
Softer Eurozone Purchasing Managers Indices for both the Manufacturing and Services sectors could weigh on the euro this morning (09:00 BST), while a surprise to the upside could instead prove supportive. It’s a quiet day for the UK, while the US has Housing Price Index and Markit PMIs to keep an eye on (14:00, 14:45). A pick-up in the HPI could provide the dollar with some support, while the PMIs are forecast to be little changed and may therefore have a limited market impact.
Overnight, a narrower trade surplus could weigh on the kiwi, while the Aussie could benefit from a pick-up in Q2 CPI.
Today's Economic Calendar
|9:00am||EUR||Prelim Eurozone Markit Services PMI (Jul)||55.0||55.2|
|9:00am||EUR||Prelim Eurozone Markit Manufacturing PMI (Jul)||54.6||54.9|
|2:00pm||USD||Housing Price Index MoM (May)||0.4%||0.1%|
|2:45pm||USD||Markit Manufacturing PMI (Jul)||56.0||56.2|
|2:45pm||USD||Markit Services PMI (Jul)||56.5||56.5|
|11:45pm||NZD||Trade Balance MoM (Jun)||$200M||$294M|
|2:30am||AUD||CPI QoQ (Q2)||0.5%||0.4%|
|2:30am||AUD||CPI YoY (Q2)||2.2%||1.9%|
|2:30am||AUD||RBA Trimmed Mean CPI QoQ (Q2)||0.5%||0.5%|
|2:30am||AUD||RBA Trimmed Mean CPI YoY (Q2)||1.9%||1.9%|