Sterling has hit its seventh day of gains against the dollar, its longest winning streak since April 2015. BOE chief economist Andy Haldane shocked markets yesterday with two particularly confusing statements. Haldane suggested that the BoE “need to look seriously at the possibility of raising interest rates to keep the lid on those cost of living increases”, however, in the same speech stating “we are happy with where rates are now”. The comments pushed Sterling higher, as economists’ focus on the hawkish parts of Haldane’s comments.
Across the pond, President Trump’s travel ban has partially been restored by the Supreme Court. The ban, which came back into effect yesterday, restricts travel from six Muslim-majority countries to the US, unless they have a close family or business tie. The countries which travel is restricted from are Libya, Somalia, Sudan, Syria and Yemen. Visa's which have already been approved will not be affected by the ban, however new applicants and some still awaiting approval will be subject to the ban unless it can be proved that they meet the criteria.
Also yesterday, the final GDP figure posted a better than expected 1.4%, with personal consumption expenditures and exports increasing more than estimated.
We have a jam packed economic docket scheduled today. Firstly, the UK release their current account, as economists’ gain an insight into the UK’s imports and export business, forecast to widen to -£17.2Bn. Shortly after, the US release a raft of data, including the Chicago PMI, University of Michigan consumer sentiment and Personal spending. All three figures are forecast to decline on the previous reading bucking yesterday’s bullish GDP number.