17/03 – Sterling rebounds ahead of BoE meeting

17/03 – Sterling rebounds ahead of BoE meeting

GBP: Brushes off Brexit headlines and focuses on BoE

EUR: Increase in coronavirus numbers add to EUR woes

USD: Unchanged ahead of FOMC


GBP declined sharply yesterday morning following news of the EU’s legal challenge on the UK over Northern Ireland. However, this weakness proved to be very short lived as by the afternoon the pound recovered and managed to end the day back up to the previous days highs. Reason for the bounce back? Optimism as we head into the BoE MPC meeting on Thursday as markets shrugged off the dreaded Brexit headline and focused on the economy and any signal from the BoE that they have grown more confident about the UK economy.

This morning we have seen the pound carve out a new year high versus the euro.


The EUR continued to lose ground over the course of the day. Concerns over Covid-19 starting to spread in Germany and Italy introducing new restrictions is no doubt having a negative tone on the euro.

In focus this morning, is eurozone inflation at 10am.

US dollar

The dollar was relatively unchanged yesterday heading into the FOMC meeting this evening. Focus will be on whether the Fed will step in to cap recent rises in long-term rate, or perhaps hint at tapering policy measures earlier than expected.

Data yesterday showed that retail sales in the US for February fell by 3.5%, however this isn’t being deemed as too negative at the moment with another round of stimulus cheques hitting bank accounts soon and markets expecting a surge in spending and shopping in March and April.

Market rates

Today’s interbank rates at 09:20 against sterling. Movement vs yesterday.

Euro€1.167 ↑
US dollar$1.389 ↑
Australian dollar$1.798 ↑
South African randR20.731 ↑
Japanese yen¥151.66 ↑

Have a great day everyone.

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Jeremy Thomson-Cook

Jeremy Thomson-Cook

Jeremy has over 13 years experience working in the FX industry. As a specialist in political risk mitigation and currency hedging, he regularly advises clients on the day-to-day moves of the markets and the implications of fiscal and monetary policy on international businesses.