EUR. Sterling showed its heels to euro and other major currencies, but at the end of the day closed marginally lower against USD…..
Ranko Berich Responsable de Análisis de Mercados en Monex Europe
Prime Minister Theresa May is facing another head of the Brexit hydra as hard Brexiteers in her Conservative Party demand a clean Brexit. The 62 backbenchers call Theresa May to reconsider her plan of a two year transition period, potentially asking her to make negotiation demands which Brussels will be hesitant to meet to say the least. Today at 9:30 GMT we have the labour market data, which apart from the Unemployment and Claimant Count Change, will also tell us how well the vital Average Earnings growth has kept up with the high inflation.
USD. The greenback was on a roll yesterday versus the rest of the G10 currencies, with the rising short term treasuries the likely cause for this move. US Special Counsel Robert Mueller found another culprit willing to plead guilty. A Dutch lawyer admitted he misled courts in Washington about contacts with Ukrainians on behalf of former Trump campaign chairman Paul Manafort and his deputy, Rick Gates. Tonight at 19:00 GMT we have the Federal Open Market Committee Minutes that cover the first monetary policy meeting the new Federal Reserve boss Jerome Powell chaired.
EUR. The single currency slipped in slow motion against the US dollar yesterday and is facing renewed pressures this morning, while the picture against other currencies was more mixed yesterday. Eurozone Consumer Confidence missed the mark yesterday, just like the French Purchasing Manager Indices this morning, although the German ZEW Economic Sentiment was strong. Throughout the morning several PMIs are published, culminating in the composite Eurozone flash PMI at 9:00 GMT
CAD. The loonie lost ground against USD yesterday, a move which is continued this morning and has sent USDCAD to the highest level in 7 weeks. December Wholesales proved no ally to loonie strength as it shrank 0.5% in the month, while an expansion was expected. The dipping oil prices then only made matters worse for the Canadian coinage. Today no Canadian data is released.