Currency-wise, the majors were confined to relatively narrow ranges. Sterling started the day on the defensive following weaker than expected UK GDP figures for July.
Meanwhile, there was no major reaction from the dollar to the US inflation newsflow. The limited FX moves have continued in overnight trading. As a result, the main pairs open this morning broadly similar to 24 hours earlier.
Attention today is on the ECB meeting, and markets are forecasting a 25-basis point hike. This follows EU inflation figures last month released high at 5.3% and someway off the ECB target inflation rate of 2%.
ECB President Lagarde’s press conference is anticipated to cause volatility in the market as she voices her outlook on future movements.