The pound has managed to hold its ground against a basket of currencies over the past 24 hours, even as Brexit worries continue to cast a shadow over the UK. Mark Carney gave Sterling some much needed respite after the Bank of England Governor backed the Brexit deal negotiated by Theresa May. Governor Carney warned investors not to bank on the fact that there will be a cut in interest rates should there be a no deal which relieved a tiny amount of pressure on the pound, but Brexit concerns remain a huge burden on the home currency.
The Euro rose across the board this morning after reports that Italy are open to revising their draft budget for 2019. Italy has been holding back the single currency due to a major clash with the EU over their upcoming fiscal plans, but a report in an Italian newspaper that Italian Deputy Prime Minister Matteo Salvani is open to reviewing the budget has leant support to the Euro. This is far from an end to the ongoing spat between Brussels and Rome however, and should there be any more disagreements between the two then expect the Euro to stumble.
Todays key data releases
Public Sector Net Borrowing numbers out of the UK this morning have already come in much worse than expected. However, as Brexit remains the key focus this has had no effect on the pound.
It is a busy day for US releases with the most important coming in the form of Core Durable Goods Orders. This is a key monthly release across the pond and with an expected uptick from the previous reading this could lend the greenback some strength. Other potential dollar movers today Unemployment Claims, Existing Homes Sales and Crude Oil Inventories figures.