Daily Update - 15th January 2019
Sterling declined against dollar on Monday, after data showed Britain’s economy grew at its weakest annual pace in more than seven years in November. The data covers a politically turbulent period in Britain and does not capture some private-sector surveys that suggested a recovery in sentiment after Prime Minister Boris Johnson’s election win on Dec. 12. The pound fell to $1.2988, down 0.01 percent on the day. The euro edged higher against the U.S. dollar , as euro gained ahead of the expected signing of a Phase 1 China-U.S. trade deal. Tensions between the U.S. and Iran after the U.S. killing of a top Iranian general put investors on guard against risk last week . But with no further escalation in conflict and focus shifting towards this week’s trade deal. The euro was up 0.02 percent at $1.1135. An index that tracks the dollar versus a basket of six major currencies was up 0.03 at 97.35 on Monday. The dollar edged higher against the Japanese yen on Monday, as dollar was lifted by optimism over the planned signing this week of a U.S.-China trade deal. The U.S.-China Phase 1 agreement, due to be signed at the White House on Wednesday, marks the first step toward ending a damaging 18-month trade dispute between the world’s two largest economies. It’s a busier day on the Eurozone economic calendar, with industrial production and trade figures due out of the Eurozone. We would expect the Eurozone’s industrial production figures to have a greater impact on the day. Forecasts are market negative. Finalized inflation figures out of France and Spain will likely have a muted impact on the majors. From the U.S, wholesale inflation and the NY Empire State Manufacturing Index figures are also due out. While we would expect the manufacturing numbers to influence, the market focus will be on the phase 1 trade agreement.Yesterday’s Market
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