Sterling has staged a timid recovery against the US Dollar after having hit a 2-week low yesterday afternoon.
The GBP/USD cross, which fell to 1.226 yesterday, had rebounded to 1.237 by
lunchtime – with markets seemingly taking in their stride the release of data showing that UK CPI-inflation had dropped to 1.5% yoy in March from 1.7% yoy in February. But GBP/USD has since dropped back to just above 1.23 with markets seemingly quick to fade any meaningful up-ticks in Sterling.
The Euro has been largely directionless in the past three sessions, trading in a narrow 1.08-1.09 range against the Dollar. Volatility has been pretty muted and range-trading is back in vogue.
European and US equities are up about 2% at time of writing, reversing yesterday’s moves. The FTSE 100 is now back near the top of a reasonably narrow fortnightly range of about 4.5% but again the lack of clear directionality is telling,
