Previous Day's Market Highlights
Sterling was a touch firmer yesterday amidst a light data calendar, although it remained within recent trading bands. The pound failed to breach 1.12 in a morning run higher against the euro but managed a small jump against the dollar in the afternoon that pushed it into the upper half of the 1.27-1.28 trading band. This dollar softness pushed euro-dollar higher above 1.14 and continued overnight, seeing sterling-dollar break 1.28 and euro-dollar regain 1.15 to hit their highest levels since 9 August.
The pound continued to hold clear of its recent sub-1.66 low against the Canadian dollar. The BoC’s Wilkins focused on financial stability in her comments yesterday. The Fed’s Bostic was upbeat on the economy, saying that it no longer needs the same level of stimulus, but was cautious on trade risks and sees only one more hike this year. The Fed’s median view is for two more hikes.
The RBA meeting minutes and a speech from RBA Governor Lower contained little new. Lowe said rates will move higher “at some point”.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
Another quiet calendar day could see exchange rates remain around familiar levels. A positive Public Sector Net Borrowing figure (09:30 BST) could offer the pound some support amidst a light data offering but may overall have a limited market impact.
The calendar picks up tomorrow with the release of the Fed’s meeting minutes. Geopolitical developments remain key; Brexit negotiations continue later in the week, which could renew pressure on the pound, depending on the resulting headlines.
Today's Economic Calendar
|9:30am||GBP||Public Sector Net Borrowing (Jul)||£-2.30B||£4.53M|
|NZD||Global Dairy Trade Price Index||0%|
|11:45pm||NZD||Retail Sales QoQ (Q2)||0.4%||0.1%|
|11:45pm||NZD||Core Retail Sales QoQ (Q2)||0.8%||0.6%|
|4:10am||AUD||RBA Assist Gov Debelle Speaks|