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Sterling trades higher on weaker greenback

14th March 2018 Market Update

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🇬🇧 GBP – Sterling rose to a two-week high on Tuesday as the dollar sold off after data showed US consumer price inflation in February cooled and President Donald Trump said he had fired US Secretary of State Rex Tillerson.

As the dollar began its sell-off, British Finance Minister Philip Hammond gave his half-yearly economic update on the economy. Hammond upgraded his growth forecasts a little and trimmed his budget deficit expectations, providing some extra wind behind Sterling’s bounce higher. We have no major economic data from today.

🇪🇺 EUR – There was limited data out from within the Eurozone on Tuesday as the recent good run in the single currency continues against its major trading partners, it remains to be seen if we will see further upside in the euro as many economists are thinking we could see further moves towards higher levels. We have no major economic data from within the Eurozone today.

🇺🇸 USD – The dollar fell on Tuesday and equity markets flinched as news broke that US President Donald Trump had ousted yet another of his top team, this time Secretary of State Rex Tillerson. The greenback at present is seemly coming under pressure with more political concerns regarding the Trump Administration which in turn is seeing the world’s reserve currency starting to debase. The only piece of data comes in the form of the retail sales numbers at 1:30pm, we are expecting an increase on the month to 0.3% from -0.3%.

 

Key Announcements

🇪🇺 EUR
TBC: Mario Draghi speech

🇺🇸 USD
12:30pm: Retail sales MoM expected to be 0.3% from -0.3%

 

Summary: Sterling rose to a two-week high on Tuesday as the dollar sold off after data showed US consumer price inflation fell.
 
US dollar weakens on reports President Trump fires Secretary of State Rex Tillerson.

 

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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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