The Pound Sterling edged away from the Euro, retreating from the highest price in a month, as FX traders were awaiting the latest economic data from the UK, specifically January’s inflation. January’s CPI was recorded at 1.8%, below analysts’ expectations of 1.9%. Other data released was generally mixed; producer price inflation was better than expected across the board and the DCLG House Price Index beat expectations. However, the retail price index missed analysts’ forecasts. Yesterday, the GBP/EUR hit a 6th consecutive day of gains, a run not seen by traders since late last year. Analysts blame the Euro’s decline on two matters; the Greek debt problem and the political worries coming out of France.
As reported at 10:26 am (GMT) in London, the EUR/GBP was trading at 0.8522 Pence, up 0.72%; in today’s trading session, the pair ranged from a low of 0.8457 Pence to a peak of 0.8522 Pence. The GBP/USD was lower at $1.2463, down 0.50%, off the session low of $1.2446.
Dollar Struggles after Trump Setback
The US Dollar is struggling for traction as a result of the fallout from the resignation of one of President Trump’s national security advisors. Michael Flynn resigned late yesterday amid a scandal involving the lifting of Russian sanctions even ahead of Trump’s election win. The EUR/USD was higher at $1.0620, a gain of 0.21%; the USD/JPY was down 0.43% to trade at 113.25 Yen. Markets are also anxious to hear the testimony of Janet Yellen, chair of the Federal Reserve Bank, for her thoughts on the likelihood of several interest rate hikes this year, especially given the Trump administration’s outlook for the greenback.
