The Pound has continued to strengthen particularly against the Euro as UK consumer price inflation data came out better than expected this morning at 0.7% compared to 0.6% that was forecast. In addition, the market remains positive that the UK can ease lockdown restrictions sooner than other major economies which is giving the Pound some support.
Yesterday morning, Eurozone flash GDP beat expectations whilst both German and Eurozone ZEW economic sentiment figures surprised the market with positive readings. This initially gave the Euro some strength although the common currency came under renewed pressure later in the day.
US retail sales data will be released at 1:30pm, shortly followed by industrial production figures at 2:15pm – both of which are likely to cause some short-term volatility. The market will pay particular attention to the FOMC meeting minutes released this evening for any comments on US monetary policy. Overall, the Dollar has remained stable in the past 24 hours.