020 7898 0500The dollar sank to its lowest mark against sterling for quite some time following comments made by Mnuchin, who effectively said that a softer dollar was good for US trade and therefore the economy. The comments came in the wake of the US government shutdown which, while now resolved, can only be viewed as a temporary fix. The current funding agreement lasts until 8 February, so it’s a situation that could soon rear its head again.
Meanwhile, manufacturing and composite climbed higher than the month previous, while services slipped. All still show growth, albeit not as strong as what the eurozone posted. Existing home sales were faintly disappointing, as they came in below expectations (though not by much).
Today’s focus is on initial jobless claims up to 20 January and we will also see new home sales for December. However, the real question is whether the dollar will slide even further against the pound and euro and, if so, by how much. As ever, your guess is as good as mine.
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