Sterling remained steady against the euro in early trading, after hitting its highest level in 2 months against the single currency yesterday. Against the dollar it traded at a 3-week high. The European Union’s proposal to relieve some pressure on the movement of goods to Northern Ireland was assessed as a positive move for the Pound, however Britain’s Brexit Minister David Frost has said overnight that the proposals as they stand were ultimately unacceptable, as the UK wanted a major concession from Brussels on the role of the European court of Justice oversight in Northern Ireland. Frost will meet European Commission Vice President Maros Sefcovic in Brussels today.


The euro has managed to hold on to yesterday’s gains against the dollar in early trading. European Central Bank governor Christine Lagarde reaffirmed her view yesterday that the recent rise in inflation was being driven by temporary factors, however the International Monetary Fund warned that price rises could be “stickier” than once thought and could be more permanent.


The dollar index, which measures the greenback against six rivals, slipped 0.1% to 93.945 on Friday. It is on track for about a 0.25% decline this week despite hitting the highest since Sept. 25 of last year on Tuesday. Improved market sentiment, which has lifted global stocks, commodity prices and bond yields weighed on the safe haven dollar. Data released yesterday showed the number of Americans filing new claims for unemployment benefits dropped below 300,000 last week for the first time in 19 months. Further evidence of the health of the economy comes later today with the release of Septembers retail sales.

Economic Calendar

01.30pm US retail Sales
03.00pm US Michigan Consumer sentiment