Firmer Risk Appetite Benefitting Sterling
Sterling will once again try to break some key levels against the Euro and Dollar having suffered a string of failures to do so over recent days. Supported by a hawkish Bank of England and firmer global markets one can expect a supported pound in the short term at the very least.
In level terms, EUR/USD opens today at the 1.16 handle, Cable (GBP/ USD) is changing hands in the top half of the 1.36-1.37 range whilst the GBP/EUR continues to operate in a narrow band between 1.1760 – 1.1820.
Datawise, the only noteworthy releases on the data schedule comes from across the pond. US retail sales are due and are projected to fall for the third month in five, declining by 0.2% in September. However this is largely due to problems in the auto sector, as the ex-autos reading is forecast to rise by 0.5% in the month.Barring any major surprises, the data should not impact the market too much.