24th February 2017 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 – There was no data out for the pound yesterday, but nevertheless the currency made gains against the majors. Sterling rebounded in the afternoon, versus both the euro and US dollar, trading at a 3 day high against the greenback. Once again, it’s a very quiet day today with no UK data expected. Movement will, therefore, be dictated by external factors.
?? EUR – German GDP figures came in as expected yesterday morning, having minimal effect on the euro. Following comments from an ECB committee member, that there was no need to change interest rates this year, the currency weakened off during the afternoon, though falling short of midweek levels. There is no European data due today.
?? USD – The Treasury Secretary said yesterday that the absolute level of US debt is a concern and new policies will have limited impact in 2017. In addition, US jobless claims rose more than expected for the week. The dollar therefore weakened during afternoon trading to 3 day lows. New Home Sales figures this afternoon will provide an important indication of housing market conditions.
1.30pm: Inflation expected to come in higher at 1.6%.
3.00pm: New Home Sales expected to come in higher to 570,000.
Our View: It’s a pretty subdued end to the week, with regards to data. US Treasury Secretary Mnuchin’s speech yesterday did little to encourage markets with regards to the US dollar, though sustained strength is still to be expected.
Ongoing political uncertainty in Europe may weigh on the euro going forward, but the reality is that there’s very little happening in terms of movement across the majors. It will be interesting to see how sterling performs post Article 50 being triggered. As it stands, there is a high level of uncertainty.
Find out more about our FX Dealing 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.