The Bank of England, Andrew Bailey, made further dovish comments yesterday explaining that interest rate hikes are not necessarily nailed on as most traders are expecting. This has caused volatility and a broad weakening of the Pound versus majors such as the US Dollar, the Australian Dollar and the Canadian Dollar.
Against the Euro it has caused volatility rather than weakness with another day of intra day rate changes of over 0.5%
Russia has made it's initial move against Ukraine overnight with a start of military action aimed at defence targets. This has also boosted the Dollar strength as traders move towards a perceived safe haven.
The real outlier is the Turkish Lira where the Pound goes from strength to strength. It could be a great time to buy property in Turkey as the Pound is currently 70% stronger against the Lira compared to September last year.
Todays scheduled news is mainly US based with their preliminary GDP numbers out later followed by oil stocks change later. With oil touching $100 per barrel on the back of the Ukraine situation this number will be watched keenly.
With respect to GBP/EUR there's a speech by the ECB's Isabel Schnabel later also that might affect rates.
Early tomorrow Germany releases it's GDP data also.
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 Preliminary GDP Data
US: 16:00 EIA Crude Oil Stocks Change
EUR: 16:00 ECN Isabel Schnabel Speech
GER: Friday 07:00 GDP Data