Politics & Equities Remain in Focus

Sterling saw renewed pressure Friday on Brexit uncertainties. Politics and equities remain in focus today.

Previous Day's Market Highlights

A slow-down in production data added to pressure on the pound amidst renewed concerns over the government’s internal political discord and Brexit negotiation disagreements as emphasised by Barnier, who said that a transition period was “not a given”.  Sterling-euro fell towards 1.1260 and sterling-dollar dipped below 1.38, down from post BoE highs above 1.14 and 1.40, respectively, with cable down from above 1.41 at the start of the week.
 
The Canadian dollar briefly weakened against the pound on Friday after jobs data disappointed. The Unemployment Rate rose more than expected, from 5.7% to 5.9%, whilst Net Employment Change contracted 88.0K.
 
Equities had a turbulent week, coming under pressure on expectations of rising inflation and less accommodative monetary policy. US stocks entered correction territory.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.1293 1.1512 1.1221 2.53%
GBP/USD 1.3832 1.4346 1.3732 4.28%
EUR/USD 1.2269 1.2538 1.2165 2.97%
GBP/AUD 1.7703 1.7861 1.7269 3.31%
GBP/NZD 1.9080 1.9466 1.8847 3.18%
GBP/CAD 1.7389 1.7646 1.7076 3.23%

Today's Market Highlights

A relatively quiet calendar means market movement may again be driven by equities and Brexit headlinesMPC Members Vlieghe (09:30 GMT) and McCafferty (16:30 GMT) are amongst the day’s speakers and will be speaking on household debt and the economic outlook, respectively. RBA Assistant Governor Ellis will speak on Australia’s economic outlook this evening (21:50 GMT).
 
Tomorrow, attention turns to the UK’s CPI data, while US CPI and UK and US Retail Sales figures will be in focus later in the week, along with the second estimate of Q4 Eurozone GDP. The government is to deliver multiple speeches over the coming weeks that will outline the future relationship between the UK and the EU.

Today's Economic Calendar

Time Currency Release Consensus Previous
24hr CAD Family Day
09:30 GBP MPC Member Vlieghe Speaks
16:30 GBP MPC Member McCafferty Speaks
19:00 USD Monthly Budget Statement (Jan) $51B $-23B
21:50 AUD RBA Assistant Governor Ellis Speech

Caxton