Market Snapshot – Pound Has Its Day Out

Pound Moves Lower

The focus of the day was the pound as the market looked forward to the CPI inflation data and also the speech from Carney during the London session. The pound had been trading in a choppy manner over the last few days in anticipation of the loads of data that are scheduled to be released from the UK during the course of the week. The currency has also been weighed down by the Brexit talks which have not had much progress during the course of the last few weeks and the market looked towards the data for some direction. But that failed to arrive as the inflation data came in as per expectations and this did not cause much of a reaction in the markets. The speech from Carney also did not deviate from what was expected and it was left to the strengthening dollar to bring in some volatility to the pound during the day.

DAX Struggles in 13000 Region

The other important piece of news was the ZEW Economic sentiment from Germany which came in weaker than expected and this weighed on the DAX. The index had moved through the 13000 region once again yesterday and managed to close above it and this would have given a lot of hope for the bulls but the lack of follow through due to the bad incoming data would have left them disappointed as they would have to do all the good work once again.

This article was originally posted on FX Empire

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