Other parts of the UK are now starting to relax their restrictions around Coronavirus. This appears to have created some support for the GBP/EUR rate which remains fixed in a battle between breaking out of resistance or failing and dropping back sharply. From a technical perspective the trading range is tightening up and has been since the 4th January. This is interesting as it indicates a potentially strong move in the near future. Which direction is the crystal ball question. We are watching eagerly.
It's a similar story across the board with the Pound....perhaps an escalation in the No. 10 party debacle could be the mover. It's a story that's unlikely to go away in a hurry. Especially if the PM was present.
However it might be the Inflation Data out from the States later that causes the next fluctuation as this will be a potential indicator of a rate rise by the FED.
Overnight the Chinese inflation numbers came in below expectation. Analysts had predicted growth of 1.8% but it came in at 1.5% perhaps taking pressure off the PBoC to raise rates. However the rate is currently 3.8% which is relatively reasonable when compared to the Europe, the UK and the US.
Besides the US inflation numbers there's not much else to report.
As ever we look forward to keeping you in the loop and look out for our next update.
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Today’s Economic Calendar
US: 13:30 Inflation Data