bank of england

Pound takes a breather

11th January 2018 Market Update

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🇬🇧 GBP – There has been minimal data released throughout the week from the UK, which has meant minimal movement. Brexit uncertainty has taken a temporary back seat and has given the pound a chance to consolidate.

Manufacturing data yesterday looked rosy, coming in better than expected. In fact, manufacturing output is expanding at its fastest rate since early 2008. Manufacturing and Construction, however, only make up a combined 30% of the UK’s output, which meant that it had minimal effect on the market.

There is no data due today.

🇪🇺 EUR – No data reported within the EU yesterday. However, the EU are reported to be warning UK companies of a regulatory chill after Brexit as it seeks to accelerate private sector preparation for a no-deal UK exit.

This afternoon sees the publication of the last ECB Policy meeting minutes.

🇺🇸 USD – The dollar took a step back yesterday as China claimed they will stop buying US Treasury Bonds, which drove down the price of the dollar. Later in the day the dollar did recover ground and has fully corrected itself this morning.

This afternoon sees the release of key PPI data, which is a leading indicator of consumer inflation. Any adverse reading could affect dollar value.

 

Key Announcements

🇪🇺 EUR
12:30pm: ECB Monetary policy meeting minutes

🇺🇸 USD
13:30pm: US PPI Inflation data

 

Summary: A very quiet 2018 continues, with little happening to move markets significantly. The immediate outlook remains the same, with only the US dollar showing any real animation following claims from China that they will stop buying US Treasury Bonds.

 

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Darren Kilner

Darren Kilner

Darren is Head of Dealing at FairFX. Darren lives and breaths FX, his Mastermind topics are G8 currencies and economic forecasts.

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