11 January, 2019
GBP/USD was stable this morning, to trade above 1.2750. The dollar fell versus its major peers on Friday, as investors grew increasingly confident that the U.S. Federal Reserve may hit the pause button on monetary tightening this year. Fed Chairman Jerome Powell reiterated on Thursday the U.S. central bank has the ability to be patient on monetary policy given that inflation remains stable. Markets are now pricing in no further rate hikes by the Fed this year. Fed Vice Chair Richard Clarida also struck a dovish tone, underscoring the central bank’s willingness to remain patient on the issue of raising rates. In UK, Labour leader Jeremy Corbyn has stepped up calls for a general election at the earliest opportunity to break the deadlock over Brexit. In a speech, he said a new government would have a fresh mandate to negotiate a better withdrawal deal with the EU. Mr Corbyn has resisted growing calls from within his own party to get behind another EU referendum, insisting an election is still his top priority if Theresa May's Brexit deal is rejected by MPs next week. Later this morning, UK Manufacturing and Industrial Production for November will be released. Later this afternoon (13:30 GMT), US Inflation data for December will be in the focus of many market participants.