Sterling strength continues

Yesterday’s markets

22nd June 2016

  • EUR German Constitutional Court Ruling
  • GBP Public Sector Net Borrowing: 9.1B
  • EUR German ZEW Economic Sentiment: 19.2
  • EUR ZEW Economic Sentiment: 20.2
  • EUR ECB President Draghi Speaks
  • USD Fed Chair Yellen Testifies
  • USD FOMC Member Powell Speaks

The Pound has continued to hold the strength from the weekend. Yesterday, Sterling appreciated 0.2 percent against the USD, to a five month high of $1.4783. This now represents a 3.4 percent jump over the past five sessions. Furthermore, the bookmakers odds now imply that there is only a one-in-four chance that Britons will opt to leave the EU in Thursday’s Referendum. However, this drop from 43 percent to 26 percent a week ago could be dangerously optimistic. Many experts are still expecting a 50-50 split. 

Today’s markets

21st June 2016

  • CAD Core Retail Sales m/m
  • CAD Retail Sales m/m
  • USD Fed Chair Yellen Testifies
  • USD Existing Home Sales
  • USD Crude Oil Inventories

Federal Reserve Chair, Janet Yellen, is due to address lawmakers for a second day today. Following yesterday’s comments that improvements in the labor market have slowed, suggesting that the Fed’s more cautious approach remains appropriate. Before a further tightening of monetary policy, the Fed must be sure of U.S. economic growth and that there is no shock in the outcome of Britain’s June 23rd vote.