Afternoon Market Update – 18/01/2017 – by Jaz Singh
January 18, 2017We’ve seen some respite in sterling pairs overnight and this morning following the large moves as a result of PM May’s speech. Yesterday’s sterling trade is seen as more of an extended short covering move after cable flirted with the $1.20 level at the beginning of the week. This morning’s earnings and claimant data from the UK, which was better than expected overall, did little to change this steady sell off. After experiencing steep declines yesterday, the dollar is in positive territory for the session; the dollar index seems to be heading back to the $101.00 handle. The DAX is range bound today, stuck between the 11530 and 11580 levels. Other stock indices are up marginally for the session as markets await further clarity from Trump and central banks. We have the Bank of Canada interest rate decision and accompanying press conference to look forward to this afternoon and Janet Yellen’s speech at 20:00 GMT.
