Sterling was able to mark gains against both the Euro and Dollar yesterday as “expectations of a rate hike by the Bank of England continued to support the Pound”. GBPEUR was able to surpass two-week highs in the Thursday session as the Euro’s performance was stunted by investors apprehension over the growing tensions on the Russia-Ukraine border. Against the Greenback, Sterling was able to rise by over 0.25% in the session and reclaim the 1.36 handle as the US “made an urgent appeal against a Russian invasion of Ukraine. Western leaders stated that Kremlin’s claim of withdrawal was false, and Russia have in fact added another 7,000 troops at the Ukrainian border. Addressing the United Nations Security Council yesterday, US Secretary of State Antony Blinken pressed Russia for a diplomatic solution to the present troubles.
After UK inflation rose to a near 30-year high on Wednesday, expectations of a BoE rate hike have increased substantially. With a rate rise of 0.75% - 1% now on the table, Sterling is enjoying a strong run of form. GBPUSD opened Thursday at 1.3588 and went on to close at 1.3624.
GBPEUR also improved yesterday. The pair started at 1.1960 and closed at 1.1984.
EURUSD was able to gain minor upside on Thursday but continued to trade in a narrow range. The pair opened at 1.1360 and closed at 1.1368.
At 07:00 this morning, UK January Retail Sales came in 0.4% over forecast, printing an actual figure of 9.1%. In the afternoon, at 15:00, Eurozone Flash Consumer Confidence will be released, expected at -8. At the same time the US will publish it’s latest CB Leading Index and Existing Home Sales. Then from 15:15, Fed members Evans, Waller, Williams, and Brainard will all be speaking.