USD strengthening but GBP holding its own, just.
With no major data releases scheduled today the focus will really be on USD and the events of the US session yesterday. A 0.7% rise in US retail sales (excluding vehicles) and a 0.4% rise in November business inventories, combined with an upward revision to October inventories led to some upward revisions to US Q4 GDP. Fed speakers Plosser and Fisher also made speeches arguing that without the swift elimination of asset purchases, inflation risks would rise again. There is also concern that rising house prices will feed through to core inflation. As such, the argument for further/more rapid reduction in stimulus is mounting. This will result in a stronger US Dollar. The next FOMC meeting (when the next round of tapering could be confirmed/announced will be Wednesday 29th Jan).