NY Open: Twenty pounds of headlines
Markets started the day in a confusion of incoming news as ECB chatter met with trade talk updates and US macro data. EURUSD took it on the chin and dropped from 1.1270 to 1.1235.
The GBP is having a busy week as ongoing Brexit negotations contend with central bank meetings in London and Washington, with cable traders focusing on both.
Saxo Bank head of FX strategy John Hardy says that while negotiations between the UK and the EU have been progressing, there is still uncertainty over what the situation will look like in 2021 in the aftermath of any proposed deal.
The Bank of England meets on Thursday and there are hopes for a hawkish approach by the central bank, adds Hardy.
With UK January earnings and unemployment rate figures due on Wednesday, Saxo's FX head reports that the ingredients for a rally in GBP are present.