13th February 2020 Market Update
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🇬🇧 GBP – The EU have approved a tough opening position for trade talks with the UK. They the UK to follow EU policies on climate change, food labelling and subsidies from companies and have “dynamic alignment” between the 2 parties.
Within the next 24 hours Boris Johnson is expected to announce his cabinet reshuffle, the first since he won the General Election.
This morning GBP/EUR rallied to its highest level since the General Election result was announced in December.
🇪🇺 EUR – The Euro weakened yesterday and into this morning against both USD and GBP, dropping to its lowest level since May 2017 against USD.
Euro weakness was influenced by Eurozone Industrial Production plummeting in December. The monthly figure was forecasted at -1.6%, but was released at -2.1% and the annual figure was forecasted at -2.3%, released significantly beneath at -4.1%.
Euro weakness was also influenced by the odds of an ECB rate cut increasing.
🇺🇸 USD – USD strengthened as traders invested in safe havens following 15,000 new cases of the Coronavirus from its source in Hubei.
Dollar strength was also influenced by Jerome Powell stating there is no reason to cut interest rates as the US economy remains in a good place.
Today at 1.30pm US CPI data for January is released. The annual figure is expected at 2.4%, slightly above last month’s reading of 2.3%, the monthly figure is expected at 0.2%, which is in line with December’s reading.
GBP: GBP/EUR achieves best level in 2 months
EUR: Euro weakens following very poor Industrial Production data
USD: Jerome Powell talks down rate cut
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