Hurricane Irma weakens fuelling Dollar strength
- JPY - Core Machinery Orders m/m: 8.0%
- EUR - Italian Industrial Production m/m: 0.1%
- CAD - Housing Starts: 223K
It is a relatively quiet day in terms of market data today, however, we do have two big stories dominating headlines and market movement; Hurricane Irma and North Korea. The latest is that Irma is making its way up the west coast of Florida, with dangerous flooding along the coast. It has been downgraded from category three to one but the danger is still there. So far there has been at least four deaths linked to the storm. We should see the tail end of the storm this week and with it being downgraded, we have seen a bit more of a risk-on sentiment, which has pushed EUR/USD a tad lower this morning.
The sigh of relief expressed by the world, after North Korea marked the 69th anniversary of its founding without any further missile or nuclear tests, added to Dollar strength. Traders are still expecting a rate rise from the Federal Reserve this year, with it seeming like the market is looking for a reason to buy the Greenback at the moment.
- AUD - NAB Business Confidence
- GBP - CPI y/y
- USD - JOLTS Job Openings
Onto tomorrow’s data. The UK releases a big piece of the data tomorrow; UK CPI (Consumer Price Index) which is a key reading of inflation. CPI is forecast at 2.8%, which is getting close to the 3% mark, where if breach Mark Carney will have to pen a letter to the Chancellor of the Exchequer. Carney will have to explain why CPI is at this elevated levels. If we do see the CPI this high, it is thought this will add further fuel to the fire for a rate hike from the Bank of England this year.