U.S. indices are seen pulling a little further away from record high levels on Wednesday, as we appear to see a slight shift in risk appetite although there are no signs at this stage of a broader trend developing.
The Bank of England (BoE) caught traders off-guard on Thursday, turning what was expected to be a rather mundane affair into something far more interesting, as two policy makers joined Kristin Forbes in voting for a rate hike.
What was shaping up to be a potentially lively ECB announcement and press conference following yesterday’s draft staff projections leak, instead ended up being another relatively dull affair, despite the leak itself turning out to have some credibility.
With momentum being very much against the Conservatives, the pound may remain very vulnerable as we near the 8 June vote. The uncertainty that a hung parliament would bring is clearly far from ideal when the country is due to begin Brexit negotiations only 11 days later and this may be contributing to the moves in the currency.