- The markets were predictably subdued yesterday as the USA celebrated Independence Day.
- GBP/EUR pushed above 1.14 briefly but failed remain above that level, closing at 1.1385 after opening at 1.1380.
- Sterling lost some ground on the US dollar closing at 1.2917 after opening at 1.2939 as another rejection of 1.30 looked to be confirmed.
- EUR/USD closed slightly lower at 1.1346 after opening at 1.1363.
- The euros losses against the other majors came off the back of weaker than expected Spanish unemployment change data which came in at -98.3K vs -120.3K expected.
- Construction PMI from the UK came in roughly as expected at 54.8 vs 55.0.
- ECB Nowotny says the 2% inflation target should not be applied too narrowly and should be flexible and normalise as economy allows.
- The Bank of England’s Saunders said Brexit negotiations does not mean that policy has to remain on hold. He said he expects further inflation and that UK households should prepare for a interest rate hike ‘at some point’.
- Catalonia could declare independence from Spain within 48 hours if voters back secession in the October referendum.
- New Zealand’s GDP Price Index came in at -0.4% overnight. We saw a figure of -0.8% last time out.
- GBP/AUD is currently trading at 1.6956 and GBP/NZD is trading at 1.7744.
- GBP/EUR is off a fifth of a percent as we lead up to UK services PMI at 9.30am.
- Eurozone services PMI came in at 55.4 vs 54.7 expected this morning.
- This afternoon we have factory orders m/m from the US at 3pm which is expected to show a figure of -0.5%.
- This evening at 7pm the FOMC meeting minutes are released from their June meeting.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|15:00||USD||Factory Orders m/m||-0.5%||-0.2%|
|19:00||USD||FOMC Meeting Minutes|