US Tariffs on Planes Manufactured in NI Weigh on GBP
A trade dispute between Boeing and Bombardier caused jitters for the Pound. The US Department of Commerce slapped a 220% tariff on Bombardier’s C-Series jets, parts for which are assembled in the company’s Northern Ireland plant. This could see the UK government having to retaliate with tariffs on planes from the US; hardly a good start for a country looking to secure a free trade deal with the States after Brexit.
There is no UK data set for release today, but Bank of England (BoE) Governor Mark Carney is set to give a speech shortly. He will be addressing the BoE’s Independence Conference.
Political Concerns in Germany Support GBP/EUR Exchange Rate
Political tensions in Germany following the weekend’s election kept GBP/EUR in positive territory yesterday, although only just. News that respected Finance Minister Wolfgang Schäuble was stepping down in October further heightened the uncertainty facing the common currency.
Numerous Eurozone releases could have an impact upon the GBP/EUR exchange rate today. A slew of business and consumer confidence surveys for September are set for release shortly, followed by a speech from the European Central Bank’s (ECB) Sabine Lautenschläger. The preliminary German consumer price index data for September will swiftly follow.
US Dollar Boosted as Yellen Hints at December Rate Hike
The US Dollar was reacting yesterday to the evening speech delivered on Tuesday by Federal Reserve Chair Janet Yellen. GBP/USD weakened, as Yellen had warned of the dangers of being too cautious with regards to hiking interest rates. A better-than-expected durable goods orders figure further boosted odds of a hike, with the chances of December tightening rising above 80%.
US finalised GDP figures for the second-quarter and advance goods trade balance data for August are the most important releases on the US data calendar today. Markets will also be treated to speeches from Federal Reserve officials Esther George, Stanley Fischer and Raphael Bostic.
GBP/CAD Exchange Rate Strengthens on Low Risk Appetite
Markets weren’t feeling particularly risky yesterday, allowing the GBP/CAD exchange rate to largely remain on the ascent during the day. With a majority of Iraqi Kurds backing independence, there is the potential for disruption to the global oil supply, but this wasn’t enough to push the Canadian Dollar higher.
Rising US Rate Hike Bets Helps GBP/AUD Inch Higher
With the US Federal Reserve looking increasingly likely to hike interest rates before the end of the year, markets were flocking to the US Dollar yesterday. This quelled appetite for the high-risk Australian Dollar, especially as the Reserve Bank of Australia (RBA) have made it fairly clear they won’t be tightening their
monetary policy any time soon.
The Reserve Bank of Australia’s (RBA) Guy Debelle is due to speak at today’s BoE conference.
GBP/NZD Wavers as Markets Await RBNZ Meeting
The New Zealand Dollar held its ground yesterday in advance of the latest interest rate decision from the Reserve Bank of New Zealand (RBNZ). In the end, while the bank held rates and lowered its growth outlook, Acting Governor Grant Spencer sounded less concerned about the strength of the ‘Kiwi’.
The only New Zealand data set for release today is the building permits for August.
Data Released Today
09:15 GBP Carney Speaks at BOE Independence Conference, London
13:00 EUR German Consumer Price Index (YoY) (SEP P)
13:30 USD Gross Domestic Product (Annualized) (2Q T)
13:30 USD Advance Goods Trade Balance (AUG)