Euro Starts 2018 Strong

The first day of trading in 2018 remained fairly flat. With the little data released not doing much to change the markets that have been flat for the last week over the festive period. A New Year but not much change to data figures from the UK, with the year starting on a negative note with Manufacturing PMI posting below than expected figures. Those of you hoping for an upturn in Sterling fortunes, it has not been a good start, with the chances of rates dropping to 1.05 more likely than 1.15 at the moment.

The Euro, however, did show strength across the board, breaking into 5-week highs against the USD as well as holding its own against GBP. For those of you requiring any USD now is a good time, as GBPUSD is closing in on last year’s highs already. However, with tonights FOMC Meeting Minutes, these gains could be short-lived and come straight back down. With Merkel holding 4-day talks with the SDP next week to see if she can form a coalition government, a full 87 days after the original vote. With a decision due on the 12th of January, should the talks be positive and a government formed, the Euro could yet get stronger.

Today’s data

Today’s data is all about the GBP and USD with a muted day for the single currency. At 9.30 we have UK construction PMI followed by ISM manufacturing PMI at 3 pm from the US. Should the UK post positive figures we could see a short buying window before Eurozone data tomorrow which could bring the rates back down, stay in touch with your account manager to be kept up to date. Finally today at 7 pm we have the FOMC meeting in the US any positive news could see the USD claw back some of its lost ground.