Without much to peruse in terms of UK data releases yesterday, GBP still managed to make strides against the euro (testing 1.4000 IB), while remaining tight and competitive against the dollar, although we have, since the end of last week, seen the pound regain some strength following the 6 month low we saw the pair hit n April.
There won’t be much data of interest seen today although we will have the BoE inflation numbers this morning, while the MPC will give evidence later regarding support for the quarterly inflation report.
Did things take another turn for the worse, again, in Greece yesterday? Well, perhaps, as we saw ministers in the struggling country lock horns with creditors over the next batch of aid which is to the tune of €28billion. There has been consternation, too, over primary residence foreclosures and the ruling party wanting to protect homeowners. The Greeks are also being held to the agreed stipulations and conditions before the funds are released – there is now a week to comply before an extra €10Bn is released to help prop up banks there. Greece then plans to have re-entered the global debt markets by the end of the year which means it will once again be able to issue new bonds.
In the States, data out confirmed a much better-than-expected non-farms payrolls showing that then propelled the dollar until the end of the day’s trading. Versus GBP, the dollar did weaken off a bit to close just above 1.5100, while against the euro it lost about 0.2% to close at 1.0800 IB.
There isn’t much in terms of data today so it’ll most likely be market sentiment and releases abroad that’ll swing USD strength.
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