Let’s check the situation on the market. The dollar is weak. On weak growth data, sterling drops. Yen weakens on better risk appetite, Chinese yuan gains. This week’s United States focuses are on Tuesday’s consumer price data and Thursday’s retail sales data. In December, the United States’ job growth slowed.
Before a heavy week of data, On Monday, the United States dollar index edged higher. Mild growth increased the probability that the Bank of England will cut interest rates this month. After it, sterling became the weakest performer.
On Monday, data showed that Britain’s economy grew at its weakest annual pace in more than seven years in November. Thus, the pound slipped.
Global head of currency strategy at Brown Brothers Harriman in New York is Win Thin. He said United Kingdom’s story is reminded that despite what might have been feared earlier, the United States remains in solid shape. Whereas, the rest of the world struggles.
Gertjan Vliege is the Bank of England policymaker. On Sunday, he said that he would vote for a rate cut this month unless economic data improves significantly.
After earlier falling as low as $1. 2959, Sterling dropped 0.53% against the dollar to $1. 2990.
The safe-haven Japanese yen dropped to a 7-1/1 month low. Because the future signing of a preliminary United States-China trade deal boosted sentiment. The offshore Chinese yuan reached a 5-1/2-month high.
On Wednesday at the White House, the United States-China phase-one agreement will be signed. It will the first step towards ending a damaging 18-month trade dispute between the two biggest economies of the world.
An analyst at RBC Capital Markets is Adam Cole. He said that there was the absence of any significant announcements over the weekend. Thus, markets have defaulted to small risk-on moves.
Worries about the economic damage of the country’s continuing bushfires hit the Australian dollar. Before giving back those gains, the Australian dollar rose to a one week high of $0.6919.
It is news for today.
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