Pound gains 1% on euro

It was another strong day for the pound after a sluggish start saw it gain 1% on the euro and 0.5% on the dollar.

It was another strong day for the pound after a sluggish start saw it gain 1% on the euro and 0.5% on the dollar

Many investors believe that the BOE may hint at raising interest rates soon when they meet at their quarterly inflation meeting today. With many suggesting Brexit-related caution, Mark Carney may surprise with a more front foot approach at todayís Inflation Report as it revises up its near-term growth forecast and highlights growing underlying inflationary risks.

Fed leave rates unchanged

The FOMC outcome has seen the Fed leave rates unchanged, the result of which has been the dollar chopping around. In what was little surprise, the Fed stated the US economy is indeed strengthening, but not enough to encourage it to raise borrowing costs. This coincided with the ADP jobs figures, coming ahead of Fridayís official US jobs data/NFP. These were much better than expected, coming in at 246K as opposed to the expected 165K.

Mario Draghi due to speak today

Much of Thursday will be spent dissecting the outcome of the FOMC Meeting and there is not too much data from the EU or the US to get in the way of this, although Mario Draghi is due to speak around lunch time in Europe. Aside from this, it will be all eyes on Carney and his troops at the BOE as they make their decision on interest rates.

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