- Sterling lost ground on the euro yesterday morning posting small losses before a modest rally in the afternoon saw the pound close roughly inline with the rate we saw at the open.
- GBP/EUR opened at 1.1361 and traded down 1.1349 before news broke that the Conservative Party and the DUP had struck a deal to form a government. GBP/EUR then went on to touch 1.1398 before closing at 1.1374.
- Against the US dollar, sterling posted its first loss since last Tuesday as the news of a Conservative-DUP agreement had little effect on cable. GBP/USD closed 12 points down on the day ending up at 1.2721.
- The deal between the Conservatives and the DUP will see £1.5bn of financial support flowing to Northern Ireland while the DUP claim to have also secured guarantees that the triple-lock on pensions will remain and so will winter fuel allowance payment in their current form.
- On the data front, we saw German Ifo business climate come in better than expected at 115.1 vs 114.7 expected.
- US core durable goods orders m/m and durable goods orders m/m came in weaker than expected at 0.1% vs 0.4% and -1.1% vs -0.5%, respectively.
- GBP/AUD is trading at 1.6713 whereas GBP/NZD and GBP/JPY are trading at 1.7382 and 142.03, respectively.
- ECB President Draghi is currently speaking at the ECB Forum on Central Banking in Portugal this morning.
- The Bank of England financial stability report is released at 10.30am with Governor Mark Carney speaking in a press conference about the report shortly after at 11am.
- This afternoon we see CB consumer confidence released from the US at 3pm before more speeches from FOMC member Harker and Fed Chair Janet Yellen at 6pm.
- This evening FOMC member Kashkari speaks in Michigan at 10pm.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|10:30||GBP||BOE Financial Stability Report|
|11:00||GBP||BOE Gov Carney Speaks|
|15:00||USD||CB Consumer Confidence||116.1||117.9|
|16:15||USD||FOMC Member Harker Speaks|
|18:00||USD||Fed Chair Yellen Speaks|
|22:30||USD||FOMC Member Kashkari Speaks|