Sterling Remains Stable

GBP

Sterling remained largely stable throughout the start of the week so far. Worries remain regarding ongoing Brexit talks surrounding the Northern Ireland border, which could put an end to the Pounds recent bullish run against most major currencies. France also sent a further warning to the UK in relation to the fishing dispute, with France saying it is in the UK’s best interest to settle the dispute and the UK must remain true to their word if the two countries are to continue working together.

Today see’s the UK release its PMI figures which will be keenly watched. We have already seen employment, inflation and retail sales data raise expectation of a Bank of England interest rate rise, further positive data today would add more fuel to the speculation.

USD

The Dollar was up overnight as US President Joe Biden confirmed his renomination of Fed Chair Jerome Powell for another term. Powell’s renomination has reinforced market expectations of a 2022 interest rate rise in the US once the Fed wraps up its asset tapering program. Strong employment gains and rising inflation is leading to some speculation the Fed may trigger a rate rise sooner than currently anticipated.

Key announcements

09.30 UK Markit services PMI