Sterling & Euro gains on Brexit Optimism

Daily Update - 16th October 2019

Yesterday’s Market

• GBP ILO Unemployment rate, Avg earning excluding bonus
• EUR ZEW Survey

Yesterday’s Explained

It was a bullish day for the European majors on Tuesday. ILO Unemployment rate came 3.9% comparative to previous 3.8%, but Avg earning excluding bonus came positive for GBP.  From Eurozone, according to the latest ZEW report,

• The German ZEW Current Conditions Index fell from -19.9 to -25.3 in October. Economists had forecast a decline to -26.0.
• Germany’s ZEW Economic Sentiment Index fell from -22.5 to -22.8 in October, which was better than a forecast of -27.0
• The Eurozone’s ZEW Economic Sentiment Index fell from -22.4 to -23.5 in October. Economists had forecast a decline to -33.0.

 

Today’s Market

• GBP Consumer price Index
• EUR Consumer price Index
• CAD Consumer price Index
• USD Retails sales control group

Today’s Focus

Inflation data will be the major focuses for today. UK will release CPI, RPI and PPI. Given current Brexit optimism, any upside surprises there would give the Pound another lift. Eurozone will release trade balance and September CPI final. Later in the day, Canada will also release CPI. There is prospect of another rebound in Loonie on upside surprises, as recent strong job data already dented chance of BoC rate cut. US will release retail sales, business inventories and NAHB housing index.