GBP/USD Hits 1.37, highest since referendum

Euro weakness saw GBP/EUR hit 1.13. Dollar strength has seen further moves lower in EUR/USD today. The calendar remains light.

Previous Day's Market Highlights

Friday saw new highs, at least for USD pairings as the dollar came under pressure on mixed data and reports that China could halt or slow purchases of US Treasuries. EUR/USD rallied to a three-year high above 1.22, whilst GBP/USD broke above 1.37 for the first time since the EU referendum.
 
Euro strength stemmed from a hawkish tone to the ECB meeting accounts on Thursday, which indicated the Bank could tweak its forward guidance early this year, and Friday’s announcement that Merkel had achieved a preliminary deal in coalition talks. Sterling also received a boost on reports that Spain and the Netherlands favour a soft Brexit.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.1263 1.1374 1.1197 1.56%
GBP / USD 1.3755 1.3771 1.3329 2.30%
EUR / USD 1.2212 1.2241 1.1746 4.04%
GBP/AUD 1.7312 1.7511 1.7098 2.36%
GBP / NZD 1.8921 1.9264 1.8613 3.38%
GBP / CAD 1.7118 1.7259 1.6757 2.91%

Today's Market Highlights

Today is a holiday in the US for Martin Luther King, Jr Day. Economic releases are light, consisting primarily of Eurozone trade (10:00 GMT) and New Zealand’s NZIER Business Confidence and Electronic Card Retail Sales figures (21:00, 21:45 GMT). MPC Member Tenreryo is to deliver a speech titled “The Fall in Productivity Growth: Causes and Implications” (18:15 GMT).
 
It’s a busier data week for the UK with the latest CPI figures out tomorrow expected to show a dip back to 3.0%, while Retail Sales are expected to have contracted according to the figures out Friday. Other items to keep an eye on this week include an expected Bank of Canada rate hike and final Eurozone CPI on Wednesday, and Australian employment data on Thursday.

Today's Economic Calendar

Time Currency Release Consensus Previous
10:00 EUR Trade Balance s.a. (Nov) €22.4B €19.0B
18:15 18:15 MPC Member Tenreyro Speaks
21:00 NZD NZIER Business Confience QoQ (Q4) 5%
21:45 NZD Electronic Card Retail Sales MoM (Dec) 0.5% 1.2%