Market Info

Dollar advances on domestic data

28/09/2017 | OzForex

 

United States Dollar:

Cable continues its descent as domestic US data continues to drive an interest rate hike before the end of the year. The data yesterday came in the form of durable goods orders with the release showing business equipment increased more than forecast in August, indicating solid demand is continuing in the third quarter. The data was announced before Donald Trump put forward the tax reform legislation, mentioned in yesterday commentary, which proposes sweeping tax cuts for individuals and corporations. This along with Yellen talking up interest rate hikes earlier this week, the USD has gone from strength to strength. Cable reached lows of 1.3350 as investors and markets overnight digest the latest. Interbank GBP/USD 1.3367 – 9:30am.

Another data-heavy day for the US with both final GDP q/q and unemployment claims due at 1:30 pm. The GDP figure has been predicted to come in at 3% and individuals who have filed for unemployment insurance the past week is set to increase 10k than the previous release 259k. Prior to this, however, governor Carney speaks at the Bank of England’s (BoE) conference. Traders will scrutinise his public engagement for clues regarding future monetary policy.

 

We expect a range today in the GBP/USD 1.3310 to 1.3450

 

Euro:

The Euro remains lower against the Pound and the US dollar. GBP/EUR has traded within a narrow range the past 24 hours with no high impact data released from either the UK or the Eurozone. The currency pair has swung in and out of 1.1400 within 20 pips of the big figure. EUR/USD has lost further ground however with the US dominating headlines with positive news about the economy. The paid had fallen to 1.1720 but has opened this morning a little higher. Interbank GBP/EUR 1.1366 and EUR/USD 1.1760 – 9:30am.

No macroeconomic data from Europe to take in today, but we do have both BoE governor Carney and prime minister May speak at the BoE conference celebrating 20 years of independence, in London.

 

We expect a range today in the GBP/EUR rate of 1.1340 to 1.1420

 

Aussie and Kiwi Dollars:

No relief for the falling Aussie as both the Pound and the Greenback has gained further ground against the currency. GBP/AUD is only marginally higher trading most of yesterday between 1.7000 – 1.7100. However, the relentless positive US data has taken its toll on the Aussie which fell below 0.8000 at the end of last week and looks set to fall below 0.7800 today. Interbank GBP/AUD 1.7075 – 9:30am.

There was no change in the New Zealand interest rate overnight and the following statement from the reserve bank of New Zealand reiterated that monetary policy will remain accommodative for a considerable period. Possibly to be expected as acting governor Grant Spencer gave the statement with Graeme Wheeler reached the end of his term this week. GBP/NZD a little off the highs, but the bulk of the gains have held. Interbank GBP/NZD 1.8564 – 9:30am.

 

We expect a range today in the GBP/AUD rate of 1.6990 to 1.7140

We expect a range today in the GBP/NZD rate of 1.8520 to 1.8680

 

Data Releases

AUD: No data releases due for release

EUR: No data releases due for release

GBP: BoE governor Carney and prime minister May speak

NZD: No data releases due for release

USD: Final GDP q/q, unemployment claims

 

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