After an absolutely glorious day of trading on Wednesday, the pound has slowed down somewhat this Thursday – though it’s still rising against the dollar and the euro.
Against the greenback sterling has climbed 0.2% to sit around $1.4235 – it actually crossed $1.43 in the pre-market – while it jumped the same amount against the euro to lurk around €1.1485. This ensured the FTSE continued to shed more of the growth managed in the first half of the month, sitting at a fresh, sub-7650 2018 low.
How the pound fairs as the day goes on is likely dependent on the US and eurozone more than anything coming from the UK. Any further dollar-related comments from Davos, especially with Trump arriving in the Alpine town, could aid or undermine the greenback, while the euro will be focused on this afternoon’s ECB rate vote and subsequent press conference, with the currency hoping Draghi and co. build on the slightly hawkish tone used in the last set of meeting minutes.
Talking of the eurozone, the DAX got off to an unhappy start, plunging half a percent as a spike in SPD membership raised doubts over the current German coalition talks. The party’s leader Martin Schulz has already stated he would put any deal to a vote, so this influx of fresh blood, likely inspired by the young-wing’s rallying cry to block any partnership, has caused concern from those investors seeking German political stability.
Despite posting some typically astonishing numbers – namely a stronger than forecast 30% rise in retail sales to £790.4 million, with a 23% jump in the UK and a 35 increase internationally – Asos (LON:ASOS) seemed just a tad too expensive for investors, who sent the online retailer 1% lower following the firm’s post-Christmas update.
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