Quiet trading continues as main FX pairs remain range bound
Yesterday’s data releases had the US under the spotlight, with the key releases offering varied results. Weekly jobless claims and existing home sales both came in under expectations, while the regional Philly Fed survey for January came in ahead of forecasts. From a dollar viewpoint, the releases seemingly negated each other as the releases had negligible impact on the currency. Similarly, the ECB minutes from their December meeting provided minimal additional insight and therefore had no impact on the euro.
For sterling, yesterday’s data calendar was very sparse and so the main FX pairs have continued to operate within confined trading ranges over the past 24 hours. Once again, the majors start this morning roughly in line with yesterday’s open with EUR/USD in the lower half of $1.13-1.14 and EUR/GBP back down below the midpoint of 83-84p, having spent some of yesterday trading at its key support level of 83p.
Looking ahead to today, UK retail sales data for December has already printed – well below expectations, falling by 3.7%, although impact on currency seems minimal so far. The only other release of note is the flash January reading of the EC measure of Eurozone consumer confidence, but once again, traders expect a narrow trading range barring any major surprises.