The Greenback continued to decline throughout the day yesterday as policy panic spooked the market. Investors are becoming increasingly nervous around the unpredictability of President Donald Trump following his inauguration speech delivered on Friday. GBP/USD jumped to a five week best and the trend remains higher after a positive speech from May last week and a USD negative speech delivered by Trump in the days following. Trump met executives from Lockheed Martin, Under Armour, Whirlpool, Tesla and Johnson & Johnson yesterday. President Trump suggested that he will “cut taxes massively” and has said to have signed an executive order on NAFTA re-negotiation.
Yesterday’s economic docket was extremely light with only one piece of notable data released. Eurozone consumer confidence which measures the economic conditions of the tertiary sector met economists’ consensus yesterday, posting a reading of -5. Anything above 0 indicates optimism in the sector.
The UK’s High Court ruling will be given this morning. The ruling is thought to have limited impact on the Pound after Theresa May outlined that the Brexit plan will be voted on by Members of the Parliament last week.
PMI data dominates the calendar today, with manufacturing and services out of the Eurozone in the morning followed by manufacturing out of the US in the afternoon. All gauges are expected to remain in line with previous readings and therefore little movement in currency volatility is expected.
Have a good day.