Thursday proved to be a volatile day for Sterling, having seen a morning sell off against the Euro to trade at weekly lows, only to rebound to test weekly highs when late afternoon Bank of England policymaker Michael Saunders said in a scheduled speech “the question of whether to curtail our current asset purchase program early will be under consideration at our forthcoming meetings”. GBP/EUR closed just above 1.1700 ahead of today’s latest and important Eurozone inflation readings. Against the Dollar, we open today at the lower end of the weekly range, the Dollar generally firmer as global stocks/indices ended moderately softer on the day. UK’s Covid cases continue to rise.
USD For the time being, the US Dollar is pretty much trendless but generally holding onto short term gains seen over the last month. Ranges this week have been pretty much contained across the board. Retail sales data for June is released at 1.30pm (core & advance).
EUR Eurozone consumer prices for July hit the wires at 10am this morning. To date, EU inflation has lagged somewhat compared to that of the US & UK, hence the generally weaker Euro of late. It’s expected to be in the region of +2%, (CPI year on year), there could be some volatility should the number surprise. Key resistance remains at $1.1850.