Today there is no UK economic data being released, therefore attention will shift to policymakers’ speeches from the European Central Bank and French CPI inflation figures.
In the European Union, French EU Harmonized CPI released below the market consensus (2.7 percent) at 2.6 percent.
Investors will keep a close eye on the speeches from the ECB policymakers today, to gauge a better understanding on future rate cuts after they reduced interest rates by 25 basis points to 4.25 percent during last week’s monetary policy meeting.
Following the European Central Bank’s decision to cut interest rates last week and the political uncertainty in the Eurozone, it has boosted GBPEUR to find a resistance level and move to a 22-month high.
This presents a great opportunity to fix any euro exposure and ‘hedge’ to protect yourself against any adverse market movements and minimise risk exposure.
Pound Sterling has been volatile against the Dollar over the last few days. On Wednesday, US CPI inflation released below the market expectation at 3.3 percent resulting in GBPUSD moving to a 10-month high however the dollar has recouped most of its losses this morning.
The lack of UK economic data has resulted in Pound Sterling being one of the best performing currencies in the G10 this week.