020 7898 0500Sterling strength and dollar weakness appear to be battling for attention in 2018. Right now each are vying to have the most influence on GBP/USD and it is difficult to see precisely which is exerting most influence from one day to the next. Hopes of a soft Brexit are clearly encouraging faith in the pound, but the dollar continues to weaken against a basket of currencies. The question is whether we will see another significant move soon and, if so, in which direction.
There were no major UK economic data releases, but Theresa May and Jeremy Corbyn went toe-to-toe in the House of Commons over the collapse of Carillion. May pointed out that Labour had given a third of the contracts to Carillion, while Corbyn countered that the Conservatives issued contracts after a third profit warning. There are fears the collapse could have a significant bearing on thousands of companies owed money. The supply chain is substantial and we could see a domino effect in the coming weeks and months. Let’s hope not.
There are no releases on the horizon today, but there is certainly enough to keep us entertained throughout the day, particularly whether another fresh post-Brexit high can be reached.
