Sterling Hits Highs of 2017

22 February, 2017

Sandeep Dugg

Yesterday, Sterling Hit highs of 2017 against the EUR as the markets recover from poor UK retail sales figures from last week. The Pound could get a further lift from today’s release of GDP figures, provided that they do not miss analysts’ forecasts.

Bank of England governor Mark Carney has acknowledged that the UK’s divorce from the EU may yet proceed smoothly and that it would mean a higher path for interest rates. Mark Carney faced a challenge from MPs on Tuesday over the way the Bank changed one of its fundamental assumptions about Britain’s economy, which helps it justify keeping interest rates at a record low.

Market Services & PMI missed expectations, and fell below January’s levels, prompting a sell-off in the US Dollar. The manufacturing PMI of 54.3 missed expectations of 55.2 while the services PMI slumped nearly 2 points at 53.9 against expectations of 55.8.

Today, we have lots of data to cause some more market movements. This morning we kick off with UK GDP which is due at 9.30 and if we beat expectations of 0.6% we could see further movements , EUR Inflation data at 10am and then later this evening we have US FOMC minutes.