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January in the Markets.

Bank of England Reports Published in January 2020

Monetary Policy Report – Read the report

This quarterly Monetary Policy Report sets out the economic analysis and inflation projections that the Monetary Policy Committee uses to make its interest rate decisions.

Monthly Decision Maker Panel Data – Read the report

The Decision Maker Panel (DMP) is a survey of Chief Financial Officers from small, medium and large UK businesses. It is used to monitor developments in the economy and to track businesses’ views.

Monetary Policy Committee Meeting Summary – Read the report

The Monetary Policy Committee has voted by a majority of 7-2 to maintain Bank Rate at 0.75%. The committee also voted unanimously to maintain the stock of corporate bond purchases and UK government bond purchases.

UK House Price Growth at 14-Month High, Says Nationwide

From: The BBC

UK house prices rose at their fastest annual rate for 14 months, according to Nationwide, with an increase of 1.9% in January.

Commentators suggest there has been some release of pent-up demand following the clear general election result.

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Euro Hits 33-Month Lows Against Franc

From: Daily Forex

The Euro sunk to a 33-month trough against the Swiss franc on Tuesday as traders bought the safe-haven franc in droves due to fears about the coronavirus and how it will continue to impact the global markets.

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Markets Continue to Decline on Coronavirus Contagion

From: Daily Forex

Global markets headed broadly lower on Monday, following a decline started last week that was compounded when new cases of the deadly coronavirus were discovered across the globe and the death toll climbed to 80.

Officials from the World Health Organisation (WHO) met Chinese health officials last week in Beijing to better assess the situation.

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Sterling Drops on Brexit Trade Deal Concerns, BoE Nerves

From: Reuters

Britain’s pound slipped to a one-week low versus the dollar and weakened against the euro on Tuesday on concern about Britain’s future relationship with the European Union and ahead of a Bank of England meeting that could see an interest rate cut.

Ahead of the knife-edge BoE rate decision on Thursday, sterling has been pushed and pulled this month by speculation over whether an imminent rate reduction is likely.

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Dollar Holds Gains as Investors Assess Damage from Chinese Virus

From: Reuters

The dollar held near two-month highs on Wednesday and other currencies seen as safe havens stabilised as investors regained their composure after an outbreak of coronavirus in China, awaiting more news on possible economic damage.

The dollar’s strong showing this week, helped by the relatively positive performance of the U.S. economy, has underlined its safe-haven credentials.

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FX Rates in January

GBP/EUR

Jan High: 1.1897
Jan Low: 1.1643
Jan End: 1.1897

GBP/USD

Jan High: 1.3224
Jan Low: 1.2974
Jan End: 1.3114

EUR/USD

Jan High: 1.1208
Jan Low: 1.101
Jan End: 1.1021