The U.S. dollar is modestly higher today with the bulk of the gains coming against the Pound sterling.
Overview
There is no major economic data slated for release today. Chicago Fed President Charles Evans is the lone Fed speaker on today’s docket.
There is a general lack of market moving events today but there will still be a heavy dose of geopolitical headlines to keep market participants busy. The House of Representatives are expected to vote on two articles of impeachment against President Trump today setting up a trial in the Senate early next year. The trial will be quick and is nearly certain to end in an acquittal of President Trump, hence the muted moves in the dollar.
What to Watch Today…
- No major events scheduled for today.
Complete Economic Calendar can be found here.
EUR
The Euro slipped a touch overnight as the dollar reigned supreme. The common currency was unable to take advantage of a report that showed German business expectations improved for a third month in December. The IFO institute’s gauge rose the most since mid-2018 to 9.8, a strong sign for Europe’s largest economy.
GBP
The British pound continues to face selling pressure as the euphoria after last week’s general election wanes. While U.K. exiting the EU by the January deadlines seems more likely, the fact remains that the U.K. will have to negotiate a trade deal by the end of 2020. Prime Minister Boris Johnson said on Tuesday he plans to set a Brexit deadline of December 2020, with or without a trade deal with the European Union.
Inflation data did little to help the sterling. Price pressure are at the lowest rate in three years, allowing the Bank of England to maintain their dovish tone.
