Today's news headlines:

‘Top Fed officials make case for high rates to cool inflation’. Federal Reserve officials continue to make a case for higher interest rates, with Lael Brainard expecting rates to stay in restrictive territory for some time to bring down stubbornly high inflation. The message is clear; rates will move higher. Markets had expected a downshift to a 25 basis point hike in the February meeting, with the current benchmark sitting at 4.5%. (Bloomberg) 

‘UK employers step up hiring despite drop in consumer confidence’. The UK job market continues to show strength in 2023, with 184,000 job advertisements appearing in the first week, a gain of 25% YoY. January is a typical time for people to move roles and find new opportunities, but the tightness of the labour market is putting upward pressure on inflation. Strikes across the country and calls for higher wages are only adding to the pressure, and with energy bill support set to come to an end in the next few months, consumer confidence is unlikely to pick up anytime soon. (Bloomberg) 

Today

Stocks are higher heading into the final trading day of the week following some central bank commentary yesterday. The Dollar Index is hovering near its seven-month low while the US 10-year Treasury yield climbs this morning to 3.41%. Oil prices are more substantial as markets weigh the likelihood of stronger demand out of China. 

Events

UK GfK Consumer Confidence (Jan): -45 (est. -41) 
UK Retail Sales MoM (Dec): -1.0% (est. 0.5%) 
European Central Bank President Christine Lagarde speaks: 10:00AM
Canada Retail and Core Retail Sales MoM (Nov): 1:30PM
Federal Open Market Committee Member Patrick Harker speaks: 2:00PM
Federal Open Market Committee Member Christopher Waller speaks: 6:00PM

Interbank rates*:

GBPUSD – 1.2360
GBPEUR – 1.1395
EURUSD – 1.0848
USDCAD – 1.3458

 

Please contact your Dealer about any upcoming FX requirements you may have, or call +44 (0)20 3465 8200. 

*Indicative interbank rates taken on the day of writing. Please speak to your Dealer to find out the current rates available for you.