Daily FX Update – 19th January 2017
Whilst the Prime Minister remained confident when facing questions in the Commons, the market was a little less optimistic as Sterling relinquished some of the gains it had enjoyed earlier in the week. We now settle back in to recent ranges as sellers re-enter the market.
The Dollar also managed to strengthen through the US session, primarily on Yellen comments that weren’t necessarily a surprise, but were upbeat, citing that there would be gradual rate hikes this year. The Buck was also aided by strong CPI numbers which back the interest rate trajectory.
Focus for the day turns to Europe and the ECB rate decision and more importantly the Draghi presser that follows. Focus will centre on the pace of QE together with inflation.
Apologies for the short report this morning as am on the road to Manchester.
Have a good day.