Previous Day's Market Highlights
Sterling was unquestionably yesterday’s star performer, showing its biggest daily rise in 9 months. We saw the post Brexit high against USD further extended, to $1.4240 and GBP/EUR was tantalisingly close to the key 1.15 level. Chiefly responsible is US Treasury Secretary, Steven Mnuchin, who talked the dollar down at Davos. He declared a weaker dollar beneficial to American Trade. That said, this is also partly a picture of sterlingresilience, borne out by upbeat employment data released yesterday. This fuels speculation that the Bank of England may raise the interest rate more than once this year. All eyes rest now on the fallout from the ECB meeting today.
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Today's Market Highlights
As sterling maintains it dominance today, the markets have begun to shift its focus away from UK data, in anticipation of this afternoons ECB press conference (1:30pm).
Everyone with vested interests will be scrutinising the comments of Draghi, hoping to gain a market edge. Any cues regarding monetary policy and the reduction of the stimulus programme will be picked apart.
As the euro enjoys its best economic growth period in a decade, does Draghi continue to believe the euro is still too strong for the bloc’s health? Coinciding with the ECB data today, will be Canadian Retail sales (1:30pm), before the release of US New Home Sales data at (3:00pm).