Key Movers

In Eurozone news, consumers lowered their inflation expectations to the lowest level in almost three years, indicating that the European Central Bank (ECB) could be nearing success in controlling prices. This data came to light via the Consumer Expectations Survey, which measures household confidence in the ECB’s ability to reduce inflation to its 2% target. Additionally, the German Preliminary Consumer Price Index (CPI) month-over-month came in lower than expected at 0% versus the expected 0.1%. CPI measures the average price change consumers pay for goods and services. So far today the EUR is down versus the USD, GBP, and CAD.

Last week and today, there was very little economic data from the UK, so monetary policy expectations drove the pound’s movement. Market participants anticipated the Bank of England (BoE) will lower rates by just 25 basis points (bps) in the two remaining council meetings this year. The bank began policy normalization by cutting rates by 0.25% in August, but left rates unchanged at its last meeting. GBP was up versus the USD and EUR, and slightly down versus the CAD this morning.

The Loonie held steady so far today for the Canadian banking holiday. Markets are looking ahead to tomorrow’s Manufacturing PMI release which could cause some movement to the CAD. The Canadian dollar was slightly up against the USD and EUR so far this morning but down versus the GBP and AUD.