20 January 2017

 

The dollar gave up some of Wednesday’s gains in early trade yesterday. There was no real catalyst in a market waiting for the early afternoon ECB policy announcement and press conference but bulls are certainly a little nervous of (too) strong dollar chat from the Trump camp.

It was fairly quiet otherwise but sterling did manage to trade with a positive bias again following Wednesday’s downside correction.

Once again ECB President Mario Draghi risked the wrath of Germany as he blamed the rise in inflation on energy. With German inflation at a 3-year high, the powerhouse of Europe wants the ECB to at least take the foot off the QE gas but it’s just not happening. ‘There are no signs yet of a convincing upward trend in underlying inflation’ Draghi said and that, along with the view that risks remain to the downside, was enough to ensure the euro was pegged back once more. The weaker euro has been such a major factor in the economic recovery and Draghi wants to keep it that way.

The dollar was on the front foot into the North American session as initial jobless claims, housing starts and the Philadelphia Fed manufacturing index all bettered consensus. However, there was another round of dollar selling which began towards the end of the European day and extended into last night’s close, most likely a final round of position adjustment ahead of the President-elect becoming the President.

UK retail sales this morning hog the data headlines. Consensus suggests a mixed report with declines expected from last month on both headline and core but a decent pick up from last December is anticipated. This afternoon, all eyes will be on the Presidential inauguration with particular emphasis on fiscal stimulus, trade and reference to the dollar.  

If you are looking to buy or sell currency, register with us today and discover how you can save on your International money transfers. Alternatively, you may contact us  (Ireland1800 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

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: