British finance minister Rishi Sunak will next week promise yet more spending to prop up the economy during what he hopes will be the last phase of lockdown, but he will also probably signal tax rises ahead to plug the huge hole in the public finances.
Jan 19, 2021 19:42 GMTFXStreet News
EUR/GBP has nudged a little higher on Tuesday, with focus more on US fundamentals.
The pair swung either side of 0.8900 as bears continue to eye key support to the downside in the 0.8850s.
EUR/GBP has nudged a little higher on Tuesday, with focus more on US fundamentals (US Treasury Secretary nominee Janet Yellen’s testimony to Congress stole the limelight) as opposed to European fundamental themes. The pair has swung either side of the 0.8900 mark, with the bears still eyeing a test of key support to the downside in the 0.8850s.
Eurozone Update
Aiding the EUR are reports suggesting that Italian PM Giuseppe Conte is getting close to securing a majority in the Senate ahead of a confidence vote on his government. He needs to secure 161 votes in order to guarantee a majority and is currently reported to have around 156/157 votes, but this might be enough if the Viva Italia Party’s 18 members (who triggered the crisis that the government curre
Jan 19, 2021 19:02 GMTFXStreet News
GBP/USD has crawled above the 1.3600 level in recent trade and currently trades close to highs of the day in the 13620s.
The main event of the day has been Yellen’s testimony to Congress, which did not deliver fireworks.
The latest daily UK Covid-19 statistics were mixed.
GBP/USD has crawled above the 1.3600 level in recent trade and currently trades close to highs of the day in the 13620s, up about 0.3% or 40 pips on the day. The move has primarily been driven by USD weakness; the Dollar Index has dropped back below the 90.50 mark from earlier weekly highs close to 91.00. As US flow returned after MLK day on Monday, markets have adopted a more upbeat mode (US stocks, crude oil and industrial metals all up).