Session Recap: pound bid across the board

FXStreet (Edinburgh) - The sterling has recovered its shine on Wednesday, following the upbeat releases in the UK labour market: the unemployment rate eased to 5.7% in the three months ended in December from 5.8% expected, while the Claimant Count Change decreased by 38.6K. The sterling pushed higher to the mid-1.5400s vs. the greenback and appreciated to the 0.7360 region vs. the euro in the wake of the release. In another direction, the BoE minutes showed a unanimous vote in favour of leaving the status quo in the UK monetary policy.

In Japan, and within the BoJ monetary policy meeting, Governor Kuroda emphasized the moderate pace of the ongoing recovery, remarking at the same time the benefits in the exports sector due to a weaker yen. He also sees inflation expectations rising in the longer term and the industrial production to growth moderately.

In the Greece front, markets continue to wait for the Greek proposal aiming to extend its loan agreement for up to 6 months. The tone of the draft will be key in determining whether a Eurogroup meeting will be held on Friday. The single currency is trading back below the 1.1400 handle, although keeping the recent ranges.

Across the pond, the FOMC minutes will be the main highlight amongst other relevant releases. The focus of attention will lie on the current USD strength within a context of global weak demand. The prospects for the inflation and the timing of the first rate hike in the US economy will be closely watched by investors as well.

Another headlines in Euroland

Greece to request bail out extension today – BTMU

Greece extension demand… a bluff? – Investec

USD Index short-term correction likely – Commerzbank

UK labour market data – Wage inflation pick up confined to bonuses – RBS

GBP/USD through 1.54 on UK jobs data

GBP/USD pressuring the weekly high – FXStreet

Valeria Bednarik, Chief Analyst at FXStreet, notes technicals suggest GBP/USD might extend further to the upside, with a break above 1.1450 expected to take the pair higher towards 1.5500 levels.
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Credit Agricole: FOMC Minutes to strengthen USD foundations – eFXnews

The eFXnews Team shares Credit Agricole’s view for USD into FOMC Minutes.
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