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Draghi caution fails to dent euro's rally
Highlights from last week:
• Euro's advance continues despite Draghi's stimulus
warning
• Mixed economic data provides little support for sterling
• US dollar slips after Fed Chair Yellen's speech
The week ahead:
• Euro zone consumer inflation data (Thursday,
10.00am)
• UK manufacturing activity data (Friday, 9.30am)
• US non-farm payrolls data (Friday, 1.30pm)
ECB president confirms stimulus still warranted The euro extended its recent gains against the pound last week, trading at fresh seven-year highs, despite a cautious speech from Mario Draghi at the annual central bank research conference in Jackson Hole. The European Central Bank (ECB) president warned Europe's slower rate of inflation meant current stimulus measures are still warranted. The euro enjoyed positive gains prior to Draghi's speech after strong PMI readings underlined support for the common currency. The index measuring euro zone manufacturing activity rose to 57.4 in July, better than many economists had expected and its highest level since April 2011.The Canadian dollar reached intra-week highs near to the CA$1.60 level against sterling as Canadian consumer spending continued to improve during June. Retail sales gained 0.5%, their six consecutive monthly rise, adding to hopes the Canadian shopper will continue to bolster the country’s economic growth rate.
The Swiss franc held on to its August gains last week, with sterling trading below CHF1.24 by Friday afternoon. Domestic data provided some support to the currency; industrial production rose by 2.9 year-on-year during the second quarter, better than the 0.6% decline expected by some market analysts.
The pound fell below the JPY140 level against the Japanese yen early in the week but subsequently pared losses. The yen gave only a muted response to data showing Japanese consumer price inflation remains stubbornly subdued, rising just 0.4% on the year in August.
Sterling fared better against the New Zealand dollar, gaining around 1% on the week by Friday afternoon to levels approaching NZ$1.78. The currency largely overlooked buoyant international trade figures on Wednesday evening revealing the country posted a $85 million monthly trade surplus in July - the first trade surplus since 2012.
ByeBye.
Highlights from last week:
• Euro's advance continues despite Draghi's stimulus
warning
• Mixed economic data provides little support for sterling
• US dollar slips after Fed Chair Yellen's speech
The week ahead:
• Euro zone consumer inflation data (Thursday,
10.00am)
• UK manufacturing activity data (Friday, 9.30am)
• US non-farm payrolls data (Friday, 1.30pm)
ECB president confirms stimulus still warranted The euro extended its recent gains against the pound last week, trading at fresh seven-year highs, despite a cautious speech from Mario Draghi at the annual central bank research conference in Jackson Hole. The European Central Bank (ECB) president warned Europe's slower rate of inflation meant current stimulus measures are still warranted. The euro enjoyed positive gains prior to Draghi's speech after strong PMI readings underlined support for the common currency. The index measuring euro zone manufacturing activity rose to 57.4 in July, better than many economists had expected and its highest level since April 2011.The Canadian dollar reached intra-week highs near to the CA$1.60 level against sterling as Canadian consumer spending continued to improve during June. Retail sales gained 0.5%, their six consecutive monthly rise, adding to hopes the Canadian shopper will continue to bolster the country’s economic growth rate.
The Swiss franc held on to its August gains last week, with sterling trading below CHF1.24 by Friday afternoon. Domestic data provided some support to the currency; industrial production rose by 2.9 year-on-year during the second quarter, better than the 0.6% decline expected by some market analysts.
The pound fell below the JPY140 level against the Japanese yen early in the week but subsequently pared losses. The yen gave only a muted response to data showing Japanese consumer price inflation remains stubbornly subdued, rising just 0.4% on the year in August.
Sterling fared better against the New Zealand dollar, gaining around 1% on the week by Friday afternoon to levels approaching NZ$1.78. The currency largely overlooked buoyant international trade figures on Wednesday evening revealing the country posted a $85 million monthly trade surplus in July - the first trade surplus since 2012.
ByeBye.