It’s the home stretch towards the end of the year and everything is quiet on the economic calendar.
In the meantime, sterling is showing strength against the US dollar, having closed the Sunday session 0.2% higher at 1.215 and already added another 0.4% to 1.220 in this morning’s Asia window.
Indicatively, the US Dollar Index (DXY) shed 0.5% to 103.89, and looks likely to continue acting bearishly as the day progresses.
Cable enjoys some upside following previous week’s dip – Source: capital.com
Among the cross pairs, the pound opened stronger against the Japanese yen at 166.05, while the GBP/CAD pair is on course for a strong session having added 0.2% to 1.667 so far.
Yields on British 10-year gilts are slightly lower at 3.4%.
The euro continues its hot streak, having climbed 0.5% against the greenback in today's opening hours. At 1.064, there is likely more upside for the EUR/USD as the session progresses.
However, while EUR/GBP opened stronger at 87.15p, the pair encountered some downside in the following hours, having dipped around 10 pips at the time of writing.
Although the economic calendar is quiet, today’s euro area wage growth reading should give an insight into the region’s inflation battle.
Wages saw the biggest increase in two years at the last reading. Great for employees, but policymakers are probably hoping for a softer reading today as the EU continues to fight uber-sticky inflation.