Sterling is outperforming major currencies today with the exception of the safe-haven Swiss Franc. The GBP/USD cross (1.384) is trading at it strongest level since March 2018 and GBP/EUR has consolidated above 1.14.
The Dollar and S&P 500 are both down slightly at time of writing. The Dollar trade-weighted index is in the red for the fourth consecutive session but all is relative – it is trading roughly where it was a month ago near the middle of a 1.6%-wide range.
US CPI-inflation data for January were mixed and ultimately unlikely to change the Federal Reserve’s currently dovish stance. Headline CPI-inflation rose marginally to 1.4% yoy from 1.3% yoy in December but was slightly lower than expected (1.5% yoy). However, core CPI-inflation fell slightly more
than expected to 1.4% yoy from 1.6% yoy.
The US Senate, which is split 50-50 between Democrats and Republicans, yesterday voted by 56-to-44 votes to proceed with the impeachment trial of former President Trump, with six Republicans joining all 50 Democrats. A two-thirds majority (67 votes) is required for Trump to be found guilty but it is unlikely that a further 11 Republicans will vote that way.
