The Bank of England met last Thursday and issued a fairly dovish assessment of the state of the economy. However, the uncertainty surrounding Brexit and the possibility of a ‘no-deal’ outcome continue to be the focus of currency markets. The absence of any news on this score meant Sterling tracked the Euro very closely against all other major currencies. Appreciation of the EUR/PLN meant that the British currency edged higher against the Zloty.
Macroeconomic centrepieces of this week are today’s release of the fourth-quarter GDP and inflation readings (out on Wednesday). Market reaction to the weaker-than-expected growth data out this morning was rather muted. We expect that most of the market action should happen on Thursday as the British Parliament votes on a variety of amendments to the Brexit negotiations.
GBP/PLN (04/02/19 - 11/02/19)
Source: Thomson Reuters Datastream Date: 11/02/19
Author: Enrique Diaz-Alvarez, Chief Risk Officer at Ebury