Previous Day's Market Highlights
The dollar weakened yesterday amidst renewed focus on US-China trade tensions, reversing previous gains. While the dollar has benefited from the tensions as a safe haven, it becomes vulnerable when markets focus on potential risks to the US economy.
Sterling-dollar edged higher above 1.31 to hit a seven-week high, helped by the weaker dollar and recent sterling strength following more positive Brexit headlines. The dollar saw additional weakness on a lower-than-expected NY Empire State Manufacturing Index. Euro-dollar briefly broke above 1.17 in overnight trading. Sterling-euro continued to trade around 1.12, which marks some of the rate’s highest levels since mid-July.
The IMF emphasized the importance of the UK and EU striking a Brexit deal, saying a no-deal scenario would be the costliest for the UK economy.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
A light economic calendar today leaves market attention on the latest geopolitical and trade headlines. Shifting risk sentiment will be a key driver for the dollar and the commodity currencies. If there are no new major headlines, exchange rates could see subdued moves today, leaving them around familiar levels.
The calendar picks up pace tomorrow with the release of August UK CPI, US housing data, NZD GDP, and a speech from ECB President Draghi.
Today's Economic Calendar
|NZD||Global Dairy Trade Price Index||-0.7%|
|11:45pm||NZD||Current Account QoQ (Q2)||$-1.050B||$0.182B|
|2:30am||AUD||RBA Assist Gov Kent Speaks|
|3:00am||JPY||BoJ Interest Rate Decision||-0.1%||-0.1%|