GBP holding steady
This morning, Sterling remains at two month highs versus Euro with inter-bank mid rates trading around 1.1820. Versus the US dollar, Sterling also remains solid in the 1.55/1.56 range. The most significant changes seen over night are on the Aussie Dollar with AUD strengthening to below 1.7100 against GBP – this was off the back of positive GDP data released in Australia overnight.
The three big events of today are:
EUR – Eurozone Gross Domestic Product (GDP) for Q2. zOut at 10am this morning this may well give EUR some support and we could see GBP/EUR drop below 1.1800
CAD – Bank of Canada interest rate decision – likely to be held at 1% – we do not expect any significant impact on this with GBP/CAD breaking 1.6400 this morning.
USD – Fed’s Beige Book – released this evening, the survey gives a picture of the overall US economic growth. As this data is released after the UK trading day we could well start tomorrow with cable having broken out of recent ranges.
Elsewhere the market is still waiting for firmer direction on possible military action on Syria – yesterday unsubstantiated rumours of missile launches in the eastern Med caused a temporary market drop, this demonstrates just how sensitive the financial markets are.