The pound is trading in a tight range against the dollar this morning ahead of the release of the Federal Reserve’s meeting minutes.
The markets will be listening closely to the details of these minutes and any ‘hawkish’ signals – suggestions that interest rates could be hiked more aggressively than expected – could cause the dollar to strengthen. Sometimes, the minutes of the meeting can set a different tone to the press conference that follows it, so there could be some surprises.
Retail sales for the US will also be released and are expected to have improved in January.
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