22nd January

Top Currency Pairs

Monday 22nd January 04:00 UTC

GBP/USD: 1.27165 (Last Week: 1.27552)

EUR/USD: 1.09029 (Last Week: 1.09625)

GBP/EUR: 1.16634 (Last Week: 1.16352)

Market News

Pound Sterling

The British Pound retraced the majority of its recent losses registered on Friday; a movement potentially linked to the prevailing risk-on market sentiment. However, there are new challenges following the release of lacklustre December Retail Sales data from the UK. In fact, the significant drop in consumer spending poses a potential obstacle for the BoE in maintaining a tight policy without risking a downturn in the economy.

Euro

The Euro seems to be consolidating its recent moves as ECB Governing Council members have been cautious about prematurely easing financial conditions. Looking forward, no change is anticipated at its January policy meeting on Thursday the 25th. Nonetheless, investors will take more cues from ECB President Christine Lagarde's speech on whether she confirms the first rate cuts this year.

U.S. Dollar

The U.S. Dollar held its ground last week as market participants have become less convinced that the Federal Reserve will cut the interest rate in March. The shift in expectation comes after last week’s economic data showed an improvement in the US economy. According to the CME Fed Watch Tool, the odds for a cut at the March meeting fell to 49.3%, a slide from 81% just a week ago.

If you require alternative currency pair updates, please get in touch and we can arrange for a personalised weekly newsletter. For other FX enquiries, or to book a demo, please call us on 020 3908 4662, or email us at info@goxchange.co.uk

Disclaimer: This is not investment advice; it is for informational purposes only.