Markets eye UK data

October 16, 2018

A host of data set for release today, where markets will be turning their attention to the UK.

The USD weakened overnight, allowing paired currencies to climb after declining on Friday. The EUR/USD opened at a low of $1.15363 and remained flat in during the early hours of trade. As we moved into mid-session trading, the pair climbed strongly, peaking at $1.16056 several hours later. It tried to hold onto those gains, but retraced late in the session and is currently trading at $1.15819. After opening half a cent lower than it closed on Friday, the GBP/USD climbed off lows of $1.30819. Following a similar path to the euro, the pound rallied to a high of $1.31807. It pulled back slightly from those highs and remained flat in late trading. It is currently trading at $1.31549.

The Dow looked set for a strong rebound after being belted last week but a sharp fall late wiped out most of the gains. The index opened at 25,335.99 and declined in early trading, falling to session lows of 25,121.30 mid-session. It bounced off those lows rallying throughout the night where it hit a high of 25,482.83. However, the Dow plummeted in the final two hours of the session to near-lows of 25,171.94. It is currently trading at 25,244.80. The Dax was able to buck the trend, putting in a strong performance overnight. The German index opened at 11,451.53 and dipped to lows of 11,439.10 during the opening hour of trade. From there, the Dax climbed for almost the entire session, peaking at 11,646.30 an hour before close. The Dax closed before the Dow dropped sharply, enabling it to close at a respectable 11,618.30.

The day ahead shapes up as another busy one for markets, with Brexit negotiations and a new budget proposal from Italy causing uncertainty in the UK and Europe. Average Earnings Index data from the UK is the headline market data for today. The figure reflects wage growth of workers in the UK. Other data set for release today includes:

China – CPI, PPI

Canada – Foreign Security Purchases

Australia – Monetary Policy Meeting Minutes

UK – Unemployment Rate, Claimant Count Change, MPC Member Jon Cunliffe speaks

Europe – German Import Prices, European & Italian Trade Balance, European & German ZEW Economic Sentiment

US – Capacity Utilisation Rate, Industrial Production, JOLTS Job Openings, NAHB Housing Market Index, TIC Long-Term Purchases, Treasury Currency Report, FOMC Member Mary Daly speaks

 

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