The pound jumped higher yesterday in what can only be described as quiet market conditions. Stock markets consolidated while bond markets meandered from side to side. The US dollar was marginally weaker with sterling the star performer.
Comments from Bank of England governor, Andrew Bailey, helped fuel the rally in sterling. His comments were not perceived as hawkish, instead, they were simply less dovish than expected, which was enough to push the pound higher. The central bank boss expressed scepticism over the prospect of negative interest rates which have been discussed frequently in the context of UK monetary policy. He additionally stated that it’s too early to consider a fresh round of asset purchases. This helped the pound nudge higher with GBPUSD moving towards $1.37 and GBPEUR to €1.12.
Today’s economic calendar sees a speech from European Central Bank boss, Christine Lagarde. There will also be more speeches from US Federal Reserve members. Data-wise, full-focus will be on the US consumer price index report released at 13.30.
8:30am, January 13th 2021
The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.