Daily FX Update – 17th January 2017
Hard Brexit rumours were denied by spokespeople for the government which saw Cable reclaim and remain above 1.2000 although prices remained lower through the day as sellers remained in control. Overnight, the Dollar has slipped across the board and even the Pound has managed to climb above 1.2100 and beyond.
Focus turns squarely to the UK today and in particular, the much hyped speech from Theresa May which is scheduled for 11.45am. What the speech is likely to highlight is that Brexit means Brexit, but once again, this fact is already known. What we’re hoping to see today is some form of blueprint, not more rhetoric. At the moment, the simple fact is the market, together with the government by the look of it, remain a little clueless about the future course of Brexit and while this is the case, GBP remains depressed. It’s time for policy, not vision. Single Market access will be the most important and most pivotal factor in my opinion. Short term direction will be set by what she says today.
We also have CPI data for the UK today. Carney was on the wires on Monday warning that the Bank of England would have limited patience when it comes to potentially over target inflation so strong numbers may stoke the Pound further higher today.
Aside from the UK focus, we also have German ZEW numbers.
Have a good day.