building-front

Dull Monday for Sterling

30th January 2018 Market Update

Get a snapshot of the day’s most important market events and currency movements sent straight to your inbox every morning. Sign up to our Daily Market Report.

?? GBP – Yesterday there was no data of note from the UK. However, Sterling dropped off against the euro and dollar. This appears to be profit taking in the market. After the sharp rise of Sterling last week, sometimes it is only natural that a retracement can follow.

This morning net lending figures for individuals are released from the UK, however they will probably have minimal market impact. This afternoon Mark Carney is testifying in front of the House of Lords’ Economic Affairs Committee. Any forward guidance from Carney will impact the market.

?? EUR – Like the UK there was no data of note from the EU yesterday. The euro maintains its particularly strong position against the US dollar. The strong euro lowers the likelihood of interest rate rises in Europe, as in Draghi’s view a strong euro poses the greatest risk to his growth outlook and provides deflationary pressures.

German CPI and Spanish GDP are released today, however this is not expected to cause significant movement in the currency markets.

?? USD – Like the UK and Europe, there was no significant data from the US yesterday apart from personal spending figures, which came in slightly below expectations. This however did not have any real market impact. Despite this the dollar strengthened across the course of the day and regained its footing. Today consumer confidence is being released from the US, and this is expected to improve slightly. This could help the dollar maintain its recent recovery.

 

Key Announcements

?? USD
15:00pm: CB Consumer Confidence

?? GBP
15:30pm: BOE Gov Carney Speaks

 

Summary: There was a very quiet start to this week, with no significant data out yesterday. Despite this, Sterling dropped off against the dollar and euro following the recent gains the currency had made. This appeared to be a natural retracement following a sharp rise in the pound, as opposed to a shift in market fundamentals. Today is also very quiet, with Mark Carney testifying to the House of Lords and US consumer confidence figures being released.

 

Find out more about our Money Transfer service for personal & business international payments. We’re committed to giving all clients the best rate possible, along with flexible and personalised service. Save time and money by reducing risk through a simple and efficient service.

FairFX Money Transfers

 

Share:
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.

Leave a Reply