Previous Day's Market Highlights
The dollar came under pressure after President Trump criticised interest rate hikes and the dollar’s strength. This saw sterling-dollar re-test 1.31 after a drop below 1.30 the previous day, the first since September, and euro-dollar break back above 1.17. Sterling-euro remained subdued below 1.12 as the euro gained due to the weaker dollar. Brexit headlines and under-forecast data had been a source of downwards pressure on the pound earlier in the week.
Elsewhere it was positive news for the Canadian dollar, which jumped on above-forecast Retail Sales and CPI prints. This pushed sterling-CAD over 0.5% lower to below 1.72, although the pound later regained those losses.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
The calendar gets off to a quiet start today, which may see exchange rates remain around familiar levels. The US releases the Chicago Fed National Activity Index and Existing Home Sales (13:30, 15:00 BST). Preliminary Consumer Confidence in the Eurozone is forecast to have weakened in July. MPC Member Broadbent rounds off the day’s events with a speech, the final one ahead of next week’s Bank of England meeting, at which markets have speculated the BoE will hike interest rates.
Later in the week, the European Central Bank will announce its latest policy decisions. Last month the ECB announced asset purchases would wind down at the end of the year. Interest rates are not expected to rise until at least next summer. Investors will watch for the ECB’s latest inflation expectations and the implications for the timeline of a future rate hike. Other highlights include Friday’s preliminary estimate of Q2 US GDP, which is forecast to have accelerated from Q1 and could prove dollar supportive.
Today's Economic Calendar
|1:30pm||USD||Chicago Fed National Activity Index (Jun)||-0.15|
|3:00pm||USD||Existing Home Sales MoM (Jun)||5.44M||5.43M|
|3:00pm||EUR||Preliminary Consumer Confidence (Jul)||-0.7||-0.5|
|6:00pm||GBP||MPC Member Broadbent Speech|