Muted market action for the main FX pairs
Yesterday’s relatively quiet data schedule likely contributed to the main FX pairs being confined to fairly narrow ranges. The limited action on currency markets is reflected in the key pairs opening this morning at very similar levels to 24 hours ago. Concern over a pending report into parties at Downing street, and ultimately the PMs resignation, also hangs over traders.
As we get underway this morning, EUR/USD remains at the midpoint of the $1.13-1.14, GBP/USD is trading just above the $1.36 threshold and EUR/GBP continues to change hands in the lower half of 83-84p.
Looking to the day ahead, the latest ECB meeting minutes will be the main release of note. Eurozone HICP inflation is also set to be confirmed at a record 5% in December. Over in the US, initial jobless claims are forecast to fall to 220k from 230k from last week while existing home sales are expected to remain at elevated levels. Barring any major surprises, the data are unlikely to impact currency markets.