skip to main content
FCP Daily Market Update

15 Feb 2019

Sterling

Sterling suffered from a resurgent dollar but also lost a little ground elsewhere yesterday morning with the Brexit cloud still weighing on sentiment. Bank of England MPC member Vlieghe was also on the wires, backing up previous comments from Governor Carney on the likely path of interest rates in the event of a no-deal Brexit. An easing or extended pause in rates is currently the default scenario. As we approached midday, the pound took a dive when a spokesman for PM May said a no-deal Brexit outcome remains on the table and that the government is still seeking legally binding changes to the withdrawal agreement.

Euro

There was no change to Eurozone Q4 growth as the second estimate came in at +0.2% as expected. This was despite German Q4 GDP being revised down from 0.1% to flat but market impact was negligible. Once again though, the focus of attention was elsewhere and any negative thoughts on the slowing Eurozone economy were put to one side and the euro took advantage of post-retail sales dollar weakness.

US dollar

The dollar had a rollercoaster ride yesterday. After an early morning wobble yesterday, it was soon back in demand with investors still buoyed by renewed confidence that a trade deal with China and a budget resolution to avoid another government shutdown were both on the cards. However, at least some of this confidence was eroded when December’s delayed US retail sales figures were released and showed sales fell at their fastest pace since September 2009. The dollar lost some of its shine in the aftermath as Q4 growth expectations were lowered and Treasury yields tripped lower. It was all change again by mid-afternoon though as reports of a lack of progress during trade talks in Beijing saw risk sentiment hit hard and the dollar rose again on safe-haven flows.

Data and events

UK retail sales are on tap today but as has become the norm with data releases, they will be of secondary importance to any Brexit headlines. For the record, after  December’s sharp fall, a rebound is expected for January but both headline and core sales are expected to have risen by just 0.2% at the start of the year. Of this afternoon’s releases from the U.S., the preliminary reading on the University of Michigan consumer sentiment index is the most current and is expected to rebound slightly after the slump in January.

Sign up for a free account or contact us  (Ireland: 1800 246 801   UK: 0800 840 2887) to discuss your payment needs, as we can guarantee to provide a payment solution that aligns best with your business.

Please note that this update is provided by Fexco Corporate Payments for your information only. It does not constitute advice. You must rely entirely on your own judgement when making an Order and entering into a contract with Fexco Corporate Payments and any decision you make to buy and/or sell currency is made solely on your own judgement. Fexco Corporate Payments  is regulated by the Central Bank of Ireland and is regulated by the Financial Conduct Authority for the conduct of payment business in the UK

Follow us on LinkedIn, Twitter & Facebook

Share this article

Fexco Corporate Payments Details

Fexco Corporate Payments  Unlimited Company  (t/a Fexco Corporate Payments) is regulated by the Central Bank of Ireland and is regulated by the Financial Conduct Authority for the conduct of payment business in the UK.

Call us on:

Ireland: 1800 246 800
UK (London): 0870 060 0587
UK (Edinburgh): 0800 840 2887

FEXCO Corporate Payments Social Media Links:

Request a Callback