Sterling gradually lost support during Friday as Brexit tensions increased and the political rhetoric became increasingly antagonistic.

US jobs data was mixed with a very weak headline payrolls gains offset by stronger than expected wages growth and a decline in unemployment.

The dollar registered a limited retreat, but a lack of confidence in other majors continued to curb potential US selling.

Sterling was hit by Brexit uncertainty as UK-EU talks remained deadlocked.

Risk appetite was cushioned by China’s promise of further monetary support with Asian equity markets pulled higher by gains in Chinese markets.

Oil prices were also resilient on underlying supply concerns. Precious metals secured net gains with silver out-performing gold.

The Norwegian krone was boosted by stronger than expected inflation data.

Sterling gradually lost support during Friday as Brexit tensions increased and the political rhetoric became increasingly antagonistic as the UK and EU negotiators failed to make headway with global growth concerns also a negative factor.

There was very choppy trading late in the European session as Sterling briefly moved sharply higher on reports that EU Chief Negotiator Barnier had made a fresh offer before fading quickly once again after the UK appeared to reject the offer very quickly UK officials stated that the proposals represented a recycling of old proposals which had already been rejected.

GBP/EUR weakened from the highs around 1.1700 towards 1.1550, while GBP/USD dipped below 1.3000 before finding an element of support. There were no major developments over the weekend with talks still said to be deadlocked. In this environment, Sterling was unable to regain ground with GBP/USD trading just below 1.3000.

Economic Calendar

Expected Previous
07:00 German Industrial Production (M/M)(JAN) 0.50% 0.80%
07:00 German Trade Balance(JAN) 21.2B 19.4B
12:30 USD Advance Retail Sales (M/M)(JAN) 0.10% -1.20%
12:30 USD Core Retail Sales (M/M)(JAN) 0.30% -1.80%
13:00 Bank of England (BoE) Monetary Policy Committee (MPC) Member Jonathan Haskel Speaks - -
14:00 USD Business Inventories(DEC, 2018) - -0.10%
23:50 JPY BSI Large Manufacturing (Q/Q) - 5.5

*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time. CentralFX are not responsible for the rates shown.