Good morning, please see today’s entry to our Daily FX Market Commentary.
The USD enjoyed a steady day of gains on the GBP. The Pound peaked early against the Dollar at around the 1.4380 mark, but the rest of day belonged to the greenback. As I wrote we are trading at 1.4236.
There are a few economic releases that may move the market from the States today.
Retail Sales is the most impactful of the lot and is due at 12:30 GMT.
A measure of the price changes experienced by producers is due at the same time and is forecast to show an increase, which is likely to be taken as a positive sign.
Lastly, there is a study of house price changes due, to give a look into the current price movements there.
We saw very similar patterns in the GBPEUR as with the USD. The early hours gave a peak of 1.2925 but then for the rest of the day there was a steady, deliberate press on the GBP. The rate now is 1.2817.
The only news of any more is employment data for the Eurozone, expected to shrink slightly.
We are seeing a bit of a see-saw of oil prices vs the EUR. As oil prices rise, the Euro is picking up ground and vice versa. After yesterday’s increase in prices in oil, and a decrease in the Euro value, we watched this unwind over Monday.
The UK is keeping a lower news profile currently, and again has nothing of significance to report today through economic news.
We will watch the Bank of England get together this week but it’s very unlikely to vote for any change in rates.
From my perspective, it seems unlikely that the Pound will see a great deal of upward movement in the short to medium term.