Today's Highlights
Sterling slipping in spite of inflation uptick
Euro drops on poor construction data
BOE voted 7-2 for unchanged base rate
FX Market Overview
I am writing this a little late this morning after spending 45 minutes stuck on the M25.Don't get me started by the way.
Anyway, yesterday's markets were livened by the slightly upbeat UK inflation data and concerned over the state of the manufacturing output data. That was short lived as far as the Pound is concerned because Sterling has slipped again this morning. The Bank of England Minutes showed a 7-2 vote in favour of maintaining the base rate at the current level. That was entirely as expected so the fall in Sterling has more to do with overall lack of interest rather than a short term knee jerk reaction. Barring any external shocks, traders are likely to hold station until tomorrow's UK retail sales data.
We saw dire construction data from Europe this morning but, such is the overall state of Eurozone data that the news barely shifted the Euro on its axis against either the US Dollar or the Pound. As far as the data goes, that is all we will get today. Traders are likely to settle down ahead of tomorrow's construction and service sector PMI indices.
The rest of the day is quiet on the data front. That is quite handy when you are running late because of a massive queue on the motorway and then an idiot in a lorry decides to block the roundabout.
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Editors’ Picks
EUR/USD holds above 1.0700 ahead of key US data
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US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
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