Daily Update – 7th January 2020
The euro edged higher against the U.S. dollar on Monday, as worries about a broader escalation of conflict in the Middle East after the United States killed Iran’s most prominent military commander kept investors away from the market. On the data front, euro zone business activity hovered near stagnation in December, according to IHS Markit’s final composite PMI (purchasing managers’ index) figures published Monday. The British pound strengthened against dollar on Monday, as investors who had sold the currency for safe havens after the United States killed Iran’s top military commander returned to the pound. Investors have remained cautious about the pound since Prime Minister Boris Johnson’s Conservatives won a big majority in the vote. They worry about more political uncertainty down the road with Britain set to leave the European Union on Jan. 31 and the two sides then beginning negotiations on their future trading relationship. The UK parliament returns on Tuesday and will debate the Brexit bill, which includes a clause ruling out any extension of the transition period for trade talks beyond December 2020. This Tuesday, the EU will release November Retail Sales, Later in the day, the US will release the official ISM Non-Manufacturing PMI, there are no data scheduled for release in the UK today. Yesterday's Focus
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