The pound was buoyed yesterday as positive data releases, including the largest swing on record in business optimism, helped to make an interest rate cut seem less probable.
Rates will still be in the news today, with the ECB’s decision being released this afternoon. It is widely forecast to be unchanged, but many are also expecting Christine Lagarde to use the announcement to unveil her strategic review – which will likely discuss changes to the interest rate target.
In the US, the dollar has drifted downwards are a brief boost from investors seeking safe haven currencies following the outbreak of coronavirus in China. With a more transparent response than in the past from Chinese officials, those investors seem to be returning to riskier currencies again.
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