GBP strong against Euro and US Dollar
The general tide of positive US data has continued to support global risk sentiment, which has the effect of weakening USD. Indeed most major currencies appreciated versus the US dollar after yesterday’s data.
Canadian Dollar (CAD) has continued to weaken with disappointing data released yesterday, GBP/CAD now trades above 1.7750.
Although there is little major data expected today, this evening we do have the release of the FOMC minutes – these are always of interest to the market as investors seek clues to future policy. Given the timing of the release there is likely to be little change in GBP/USD before tomorrow morning’s early session starts.
Looking ahead, there is the potential for market moving news emanating from the European Central Bank (ECB) and Bank of England (BoE) meetings:
Yesterday’s euro region inflation data recorded a record low of 0.7%. Despite the ample room for further stimulus, stronger growth in the region is likely to ensure the ECB keep policy unchanged.
With no change expected from the BoE we could see a continuation of the recent trend of gradual strengthening of GBP against EUR.