Previous Day's Market Highlights
The dollar came under pressure as inflation rose only in-line with expectations and the White House announced the departure of Rex Tillerson as Secretary of State, adding to uncertainty. The Canadian dollar also weakened as BoC Governor Poloz said higher inflation might not be needed for additional growth and that the Bank would remain cautious on adjusting policy. The pound firmed during Chancellor Hammond’s Spring Statement, which highlighted smaller budget deficit and higher 2018 growth forecasts.
These movements saw cable rally above 1.39, although it couldn’t quite regain the 1.40 psychological barrier, a level it last broke on 25 February. Against the euro, the pound again met resistance around 1.13, while sterling regained 1.77 against the Aussie, 1.90 against the kiwi, and 1.80 against the Canadian dollar. Euro-dollar moved higher to breach 1.24.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
This morning, both ECB President Draghi and the ECB’s Praet have struck cautious tones on inflation, coinciding with a slightly softer euro against both the firmer dollar and the pound this morning. Traders will keep an eye on additional speakers throughout the day, with comments closely watched following last week’s meeting, at which the ECB removed its easing bias from the policy statement.
US Retail Sales will keep the dollar in focus in the afternoon (12:30 GMT), with an expected pick up after January’s decline. This could strengthen the dollar, although any additional political surprises could be the greater driver, likely to the downside given heightened uncertainty.
Overnight, faster quarterly GDP growth could see a stronger kiwi dollar.
Today's Economic Calendar
|10:00||EUR||Industrial Production w.d.a. YoY (Jan)||4.7%||5.2%|
|10:45||EUR||ECB VP Constancio Speaks|
|12:30||USD||Retail Sales MoM (Mar)||0.3%||-0.3%|
|12:30||USD||Core Retail Sales MoM (Mar)||0.4%||0.0%|
|14:30||USD||EIA Crude Oil Inventories (9 Mar)||1.500M||2.408M|
|16:15||EUR||ECB's Coeure Speaks|
|21:45||NZD||GDP QoQ (Q4)||0.7%||0.6%|
|21:45||NZD||GDP YoY (Q4)||3.1%||2.7%|
|00:00||AUD||Consumer Inflation Expectations (Mar)||3.6%|