Previous Day's Market Highlights
Dollar weakness contributed to a morning pick-up in both the pound and the euro. Sterling-dollar regained 1.42, while euro-dollar regained 1.25 later in the day. Sterling-euro held above 1.14 but headed lower after initial morning gains.
US data were mixed, doing little to assist the dollar. Notably, quarterly Nonfarm Productivity declined for the first time since early 2016. US ISM Manufacturing PMIslipped less than expected and remained in firm expansionary territory. Manufacturing PMI in the UK slowed more than forecast around the time the pound’s morning gains were capped.
UBS yesterday suggested the Bank of England could raise rates as soon as May if the UK agrees a transitional deal by March. Markets have been expecting a rate hike later in the year.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
Markets will keep an eye on Eurozone Producer Price Index (10:00 GMT) figures this morning ahead of the main event, this afternoon’s January jobs report from the US (13:30 GMT). A pick-up in NonFarm Payrolls and Average Hourly Earnings from last month could temporarily strengthen the dollar, but the greenback may struggle to reverse its recent weaker trend given a March interest rate hike is already largely priced in.
Next week, the Reserve Bank of Australia and the Bank of England are both expected to keep interest rates on hold. Investors will closely watch any adjustments to the Banks’ forecasts for clues as to whether the respective monetary policy outlooks are more or less hawkish.
Today's Economic Calendar
|10:00||EUR||Producer Price Index YoY (Dec)||2.3%||2.8%|
|13:30||USD||Unemployment Rate (Jan)||4.1%||4.1%|
|13:30||USD||Nonfarm Payrolls (Jan)||180k||148k|
|13:30||USD||Average Hourly Earnings YoY (Jan)||2.6%||2.5%|
|13:00||USD||Average Hourly Earnings MoM (Jan)||0.3%||0.3%|
|15:00||USD||Michigan Consumer Sentiment Index (Jan)||95.0||94.4|
|15:00||USD||Factory Orders MoM (Dec)||1.5%||1.3%|
|18:30||USD||Fed Member Kaplan Speaks|
|20:30||USD||Fed Member Williams Speaks|