A big day for financial markets
Wednesday 15 December, 2021
Daily Currency UpdateThis morning we saw UK Consumer Price Index (CPI) figures come in above expectation at 5.1% vs an expected 4.8%. GBP/USD rose off the back of this to a weekly high of 1.3265 before retracing slightly.
The currency pair has continued its climb since then however, topping out at around 1.3282 this morning. This is the second day in a row that the pair has attracted investors. It has built some momentum ahead of the all-important US Federal Reserve and Bank of England meetings today and tomorrow respectively.
Key MoversToday sees the start of the two-day US Federal Reserve meeting where they will announce any interest rate policy shifts. Of all the central bank meetings this week, this is likely to be the most important risk event and could cause volatility as a result.
The market expectation is that the Federal Reserve will be declaring a shift in policy to make way for a hike in interest rates over the course of 2022. Before today’s meeting, US retail sales figures will be released which could also have a last-minute effect on the Fed’s positioning before their rate decision.
- GBP/USD: 1.3215 - 1.3305 ▲
- GBP/EUR: 1.1725 - 1.1795 ▲
- GBP/AUD: 1.8530 - 1.18625 ▼
- EUR/USD: 1.1205 - 1.1290 ▼