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Pound rebounds ahead of services PMI’s

5th February 2020 Market Update

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?? GBP – Trade talks have already concerned markets with the pound starting February on the backfoot as Johnson and Barnier yet again, coming to different conclusions. Despite this, sterling rebounded from its six-week lows against the dollar yesterday after UK Construction figures resulted better than expected. This offset many fears of a hard Brexit fuelled by Johnson’s tough stance on EU trade talks.

With UK figures being positive the pound still looks sensitive to any disagreement with Brussels, until both parties start singing from the same hymn sheet, you could expect further downside on the pound. Today the UK releases Final Services PMI at 09:30.

?? EUR – The euro remained silent yesterday with no planned data or economical news released from the EEA. Today we have Retail Sales at 10:00 and ECB President Lagarde speaking at 12:15.

?? USD – The dollar held the majority of its gains against safe-haven yen yesterday as China released an upbeat statement that the Coronavirus could be contained. President Trump spoke yesterday claiming “incredible results” are boosting the US economy. Many have highlighted that the reliant job growth and two completed trade deals could propel him to re-elections this year.

Today we have ADP Non-Fam Employment Change at 13:15 and ISM Non-Manufacturing PMI at 15:00.

 

Summary:

GBP: Services PMI’s in focus this morning
EUR: Lagarde set to speak today
USD: Job figures in focus

 

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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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