Previous Day's Market Highlights
The pound came under pressure after inflation disappointed, with CPI unexpectedly holding steady at 3.0%. The consensus forecast had been for an increase to 3.1%. The euro had received some support from above-forecast German GDP and unrevised Eurozone GDP. Sterling-euro fell below 1.1200 to its lowest levels since 20 October.
US PPI surprised to the upside ahead of Wednesday’s CPI release, but had limited impact on the dollar. The Fed’s Bullard was cautious on a December rate hike, citing risks of pushing inflation lower. The euro rallied against the dollar over the course of the day, breaking 1.1700 and then 1.1800 for the first time since 26 October.
Overnight, data showed that Q3 wages picked up less than expected in Australia, which weighed on the Aussie and pushed sterling-Aussie above 1.7300 to a new high since May.
Fed Chair Yellen, ECB President Draghi, and BoE Governor Carney discussed central bank communication at the ECB’s conference yesterday.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
|GBP / EUR||1.1151||1.1451||1.1083||3.21%|
|GBP / USD||1.3170||1.3321||1.3039||2.12%|
|EUR / USD||1.1811||1.1858||1.1553||2.57%|
|GBP / NZD||1.9149||1.9433||1.8378||5.43%|
|GBP / CAD||1.6753||1.7171||1.6383||4.59%|
Today's Market Highlights
The busier calendar continues with UK employment data (09:30 GMT). September’s wage growth will be of particular interest and will likely be the main driver of the pound, which may see additional pressure today if wage growth fails to pick up pace.
Markets will keep an eye on the Eurozone’s September Trade Balance (10:00 GMT) and a speech from the ECB’s Praet for any surprises.
In the afternoon, attention will primarily be on the dollar, which could see pressure if both CPI and Retail Sales figure slow (13:30 GMT). Given yesterday’s above-forecast PPI print, expectations for CPI may be higher and therefore risk disappointment.
Today's Economic Calendar
|09:30||GBP||Average Earnings Excl. Bonus 3M/Yr (Sep)||2.2%||2.1%|
|09:30||GBP||Average Earnings Incl. Bonus 3M/Yr (Sep)||2.1%||2.2%|
|09:30||GBP||ILO Unemployment Rate 3M (Sep)||4.3%||4.3%|
|09:30||GBP||Claimant Count Change (Oct)||2.3K||1.7K|
|10:00||Multi||MPC Member Haldane, ECB's Praet Speak|
|10:00||EUR||Preliminary GDP s.a. YoY (Q3)||2.5%||2.5%|
|13:00||GBP||MPC Member Broadbent Speaks|
|13:30||USD||Retail Sales MoM (Oct)||0.0%||1.6%|
|13:30||USD||Core Retail Sales MoM (Oct)||0.2%||1.0%|
|13:30||USD||CPI YoY (Oct)||2.0%||2.2%|
|13:30||USD||Core CPI YoY (Oct)||1.7%||1.7%|
|15:30||USD||EIA Crude Oil Inventories (10 Nov)||-2.850M||2.237M|
|00:30||AUD||Employment Change s.a. (Oct)||15.0K||19.8K|
|00:30||AUD||Unemployment Rate s.a. (Oct)||5.6%||5.5%|