Markets turn their eye to the UK after the pound fell over two cents overnight.

The EURUSD opened the day at $1.11426 and traded flat early, before slipping to lows of $1.11288 mid-session. It bounced off those lows, peaking at $1.11741 a few hours later. Late trading saw the euro give up those gains and it is now trading at $1.11414. The GBPUSD was belted overnight after speculation surfaced that newly elected PM Boris Johnson raised the prospect of a hard Brexit. Data missing expectation didn’t help the situation either. There is some thought out there that pound was overbought in the lead-up to the election. The pair started the day at $1.33243 and bumped up to an opening-hour high of $1.33343. It was all downhill from there as the pound sunk to a low of $1.30977 late in the day but has continued to negative trend on Wednesday, currently sitting at $1.30928.

The Dow made some small gains overnight, despite the political mess surrounding impeachment of the President going on in the background. The index began the day at 28,222.36 and slid to a low of 28,163.49 mid-session. It bounced off those lows, climbing to a high of 28,325.65. It has come off those highs and is now trading at 28,271.00. The Dax struggled overnight, unable to maintain its positive start to the week. The German index opened at 13,380.97 and edged up to a high of 13,410.60 early in the day. The rot set in shortly afterwards, falling to lows of 13,267.37 mid-session. It is trading near those lows and is now at 13,263.30.

Attention turns to the UK later tonight with the release of crucial CPI data. With the election now out of the way, focus can now return to economic data. It is expected to show an annualised growth in inflation of 1.4%, down slightly from 1.5% recorded at the last reading.

Other data published today includes:

NZ – GDP, Trade Balance

UK – PPI Input & Output, Core CPI, HPI, RPI

Canada – CPI, Core, Trimmed, Median and Common CPIs

US – Crude Oil Inventories, FOMC Members Lael Brainard and Charles Evans speak

Europe – German PPI, German Ifo Business Climate, Final CPI & Core CPI, SNB Quarterly Bulletin, ECB President Christine Legarde speaks

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