- Economic data was very thin on the ground yesterday, and that ultimately seemed to suit the pound, with Sterling making solid gains over the course of the day.
- GBP/EUR opened the morning around 1.1260 before closing at 1.1340 (+0.70%).
- GBP/USD opened the morning around 1.3080 before closing at 1.3150 (+0.55%).
- There were a raft of lower impact Eurozone releases yesterday morning:
- Final Services PMI 55.0 (54.9 Exp)
- Sentix Investor Confidence 34.0 (31.2 Exp)
- PPI m/m 0.6% (0.4% Exp)
- Speaking yesterday ECB Chief Economist Praet said the Central Bank’s decision to extend the asset purchase programme was justified by the current low levels of inflation, and that achieving their inflation target still requires a substantial degree of monetary policy accommodation.
- US Commerce Secretary Wilbur Ross stated yesterday that he was optimistic the US and UK could achieve a free trade deal following Brexit, and that a ‘joint scoping exercise’ had already been held back in July with a similar meeting due to take place later this month.
- Canada Ivey PMI 63.8 (60.2 Exp). This was the strongest reading for the purchasing managers index in 21 months.
- The Reserve Bank of Australia kept interest rates on hold at1.50% as expected. RBA Governor Lowe said he expected the current low levels of inflation to remain for some time, but that it will gradually lift as economic growth improves.
- German Industrial Production m/m -1.6% (-0.7% Exp)
- UK BRC Retail Sales Monitor y/y -1.0% (1.9% Previous)
- UK Halifax HPI m/m 0.3% (0.2% Exp)
- Not a great deal of data set for release again today.
- ECB President Mario Draghi speaks at 9am this morning.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|09.00||EUR||ECB President Draghi Speaks|
|10.00||EUR||Eurozone Retail Sales m/m||0.6%||-0.5%|
|TBC||NZD||GDT Price Index||-1.0%|
|15.00||USD||JOLTS Job Openings||5.98M||6.08M|
|17.35||USD||Fed Member Quarles Speaks|
|17.55||CAD||BOC Gov Poloz Speaks|