The S&P 500 hit another record high on Friday but will not get a chance to do so today with US markets closed for a public holiday. Currency markets have done little in terms of price action.
The GBP/USD cross continues to hover around 1.30 – the average since mid-October. The promise of fiscal stimulus in the UK budget – due in mid-March – has put a floor under Sterling but weak macro data and the threat of a Bank of England policy rate cut continue to weigh on the currency. Similarly the Euro, Australian and Kiwi Dollars have done little versus the US Dollar in the past 48 hours.
Only the Swiss Franc has lost further ground, with USD/CHF having inched to a 2-month high of 0.982. This will come as a relief to the Swiss National Bank which had expressed concerns about the impact of a strong currency on the domestic economy but had seemed unwilling and/or unable to arrest the Swiss Franc’s rally.
