Sterling recovers from recent losses

Yesterday the most volatile currency in the market was the pound, with GBPUSD dropping sharply before recovering, perhaps on the back of news that the UK will offer a resolution soon on the Irish border issue sooner rather than later.

The euro consolidated gains on Wednesday after hitting a six-week high in the previous session as investors waited for fresh catalysts to push the single currency higher.

The dollar recovered slightly on hopes that negotiations between the United States and China would produce a compromise and avoid a full-blown trade war.

But news that U.S. President Donald Trump and German Chancellor Angela Merkel had discussed “joining forces to counter” China’s economic practices and alleged intellectual property theft raised fears that trade tensions could escalate.

The only data of note today is the third estimate of US Q4 GDP. We expect a marginal upward revision from 2.5% (annualised) to 2.6%. The consensus forecast is looking for 2.7%.

Leave a Reply

Your email address will not be published. Required fields are marked *

four × one =

What's Going On?

Currencies 4 You Limited is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House, Victory Way, Admirals Park, Crossway Dartford, DA2 6QD. Currencies 4 You's Payment and Foreign Currency Exchange Services are provided by Ebury Partners UK Limited. Ebury Partners UK Ltd is authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution. Reference number: 900797. Ebury Partners UK Ltd is registered with the Information Commissioners Office, with registration number: Z209673X | Terms and Conditions | Privacy Statement | Careers