Sentiment was mixed yesterday. This developed against the backdrop of a peaceful data schedule. At the same time, markets were digesting the latest news from China regarding additional stimulus measures.
Currency-wise, the key FX pairings have been range bound for the past 24 hours. The euro fell marginally following dovish remarks from many ECB members, including the usually aggressive Bundesbank President Nagel.
Although the pound is up at the time of writing, it is still way off its highs and may experience further weakness in the coming days. This comes as UK borrowing costs made the news again after rising notably in recent days, fuelled by market concerns about the Labour government’s budget.
Looking ahead, the data calendar is quiet for the entire European session. Overnight, however, the release of the most recent Fed FOMC meeting minutes will draw attention. Meanwhile, comments from a multitude of Fed officials will be scrutinised.
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