- Sterling lost ground on both the US dollar and the euro with GBP/EUR falling 0.44% yesterday and GBP/USD falling by 0.76%.
- GBP/USD opened at 1.2581 before closing at 1.2485 and GBP/EUR opened at 1.1723 before closing at 1.1672.
- It was a relatively quiet day on the data front with only personal spending and pending home sales data from the US and Spanish flash GDP from Europe.
- The Spanish flash GDP q/q figure came in as expected at 0.7% whereas US personal spending m/m beat expectations slightly at 0.5% vs 0.4% expected. US pending home sales same in as expected at 1.6%.
- US President Donald Trump’s controversial immigration policy to restrict entry to the US of nationals from Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen continued to dominate the headlines.
- Protest marches took place in many European cities and the USA top legal adviser, attorney general Sally Yates, has been dismissed by Trump after she quested the legality of the immigration ban.
- The Bank of Japan kept their policy rate steady at -0.10% and stated that risks to the economy and prices have tilted to the downside.
- The Bank of Japan have also raised their FY 2017 GDP forecast to 1.5% y/y but CPI is kept unchanged at 1.5% y/y.
- Today we have Eurozone CPI data at 10am beofre attention turns to Canada at 1.30pm with the release of GDP m/m.
- Chicago PMI is released at 2.45pm just before US CB Consumer Confidence at 3pm.
- This evening we see the employment data from New Zealand released at 9.45pm.