GBP - British Pound
Currencies remain relatively subdued and GBP had pressure on it eased off after chances of a rate cut by the Bank of England were reduced slightly at the end of January to 60% from 70% at the start of this week. Sterling's mildly positive trend was then supported by better than expected UK labour data for the three months to November. Employment growth picked up 1.1% and the jobless rate in the UK held at 3.8%. Wage inflation also came out at 3.4%, and overall there was support for the argument in the UK that the labour market remained buoyant. Sajid Javid, UK's chancellor was on the wires this morning stating that a trade deal with the EU 'can absolutely be done before the year-end'. 'A deal can be done on both goods and services'. This was a reverse in sentiment on his and Johnson's comments on the weekend which were less optimistic about striking a deal that would be mutually beneficial for both sides.
China’s transparency and the announcement of measures to counter the coronavirus outbreak calmed unnerved markets and revived risk appetite in Wednesday’s Asian trading. The US dollar began to strengthen again after the Chinese authorities calmed nerves around how this latest virus outbreak would be dealt with effectively. The Chinese stocks rebounded from year lows while the S&P 500 futures alongside US Treasury yields also firmed further.
If the United States can't make a deal with the European Union, a 25% tariff will have to be imposed on the European car imports, US President Donald Trump told Fox Business News in an interview on the sidelines of the World Economic Forum in Davos this morning. This may put some pressure on the Euro in the coming days.
1.3010 - 1.3120 ▲GBP/EUR:
1.1730 - 1.1790 ▲GBP/AUD:
1.9010 - 1.9160 ▲GBP/CAD:
1.7010 - 1.7140 ▲EUR/USD:
1.1040 - 1.1110 ▼