Pound trades mixed after court ruling

The GBP initially reacted positively to the UK Supreme Court ruling that government cannot trigger Article 50, to begin the divorce procedures form the EU, without approval from parliament. The initial optimism was quickly doused by the Courts ruling that Wales, Scotland and Northern Ireland would not need to give assent before the triggering of article 50. This led to the GBP giving back its gains as markets priced in the uncertainty and possible reaction from these countries, who might begin their own separation from the UK if the situation is not handled delicately.

 

25-Jan 08:00 UK equity Markets Open FTSE MIB

 

EUR consolidates ahead of key data

The EUR came off of its best levels this week to now begin its consolidation phase despite relatively positive comments from ECB`s Lautenschlaeger stating that it is perhaps time for the ECB to consider tapering tis monetary policy. The EUR is moving sideways and todays German Ifo business Climate figure, expected at 111.3, could be the catalyst for a new direction with a better than expected figure likely to result in a move higher for the EUR while a worse than expected figure could result in a move lower.

 

25-Jan 09:00 EU German Ifo Business Climate EURUSD

 

Has the New Zealand economy turned the corner?

The New Zealand dollar has enjoyed a stellar month against the USD, as we see the pair now trade above last month’s highs, making an impressive gain of over 300 pips this month alone. Today’s CPI q/q data, expected at 0.3%, will show just how well the NZD economy is fairing with a better than expected release likely to lead to further upside in the NZD as trader’s price in the expected benefits of the economy heating up. On the other hand, a worse than expected figure will see the NZD reverse some of this month’s gains as markets price in the expected effects of a cooling economy.

 

25-Jan 21:45 NZD CPI q/q NZDUSD