The pound is on course to record its biggest weekly rise in a month as Brexit fears have continued to fade throughout the week. As concerns over the UK crashing out of the EU without a deal receded, the pound enjoyed a week of strong gains, peaking just above 1.17 versus the euro in the middle of the week. After lawmakers were given the opportunity to vote on a delay to Brexit, should Theresa May’s withdrawal agreement not be approved later this month, sterling surged to multi-month highs and has clung on to the majority of its gains thereafter. With the terms of the withdrawal agreement still something of a mystery however some investors exercised caution and refrained from getting too carried away with the headlines. GBPEUR retraced slightly towards the end of the week as some analysts noted that a postponement of the exit date is not something the UK has full control over, and traders took their profits where they could.
The dollar made headway towards the end of the week after GDP data from the states posted better than expected. Gross Domestic Product grew at an annualised rate of 2.6% in the final quarter of last year and outstripped the forecasted 2.3%. The dollar recovered from the losses it suffered earlier in the week after US-North Korea talks collapsed and rattled markets.
Today’s key events
This morning, the eurozone published a host of data releases with France, Germany, Spain and Italy all having a moment in the spotlight.
The UK also released its Manufacturing PMI number which arrived in line with expectations and had little impact on the pound’s morning.
This afternoon, Canada will announce its latest GDP figure with an improvement from the previous reading widely anticipated at 13:30.
The final release of note before the week closes out will be from the US in the form of ISM Manufacturing PMI figures at 15:00.