Sterling uncertainty continues
17th February 2017 Market Update
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?? GBP - From the UK yesterday, the pound continued it’s wayward moves against its major trading partners on thin data. This was despite a small jump in mid morning trade. Sterling is finding it incredibly difficult of late to break through crucial levels, against both the single currency and U.S dollar, before next month’s potential triggering of Article 50.
From the UK today, we have data out in the form of retail sales, on the month we are expecting a higher reading of 0.9%, whilst on the year the figures are looking to come in lower at 3.4%.
?? EUR - It was another flat day for the single currency against the greenback, despite comments from the European central bank in relation to monetary policy, whose comments did little to move a poor performing euro. Over the month, the euro has been stuck in three cent range versus the U.S dollar, though with Greece’s debt issues looking to resurface over the coming months, we might see that range broken.
From the Eurozone today, the only piece of data worth looking at will be in the form of the construction numbers. We have no consensus figures out, though the numbers on the month prior were 0.4% and 0.2% on the year, respectively.
?? USD - Across the Atlantic, data was also at a premium with the exception of the initial jobless claims which came in lower by 6,000 to stand at 239,000. We have no major data today from the United States, though traders will be looking to square off their positions ahead of the longer weekend due to President's day.
9.30am – Retail Sales m/m.
Our View: The pound remains a currency that many still don’t believe is worth holding ahead of next month’s Brexit trigger date. Though once the triggering takes place the pound could start to trade freely after eight months of uncertainty.
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