The Trump rally seems to have returned in full force, the Dow Jones adding another 100 points to its tally after the bell. That takes the index within striking distance of 20400, and means it has travelled around 2000 points since the US election last November. Interestingly this Dow strength didn’t come at the expense of the dollar; the greenback took half a percent off the yen and 0.3% off the euro, though it could only shrink its losses against the pound to 0.1%.
That’s because sterling seems to have its eyes firmly locked on tomorrow’s UK inflation reading, which analysts are expecting to near the Bank of England’s targeted 2%. The prospect of such an upward CPI swing, and the potential ramifications this has for a BoE rate hike, has helped the pound hold off the dollar while nabbing nearly half a percent in growth from the euro.
It has also prevented the FTSE from fully joining in with the day’s rally; while a 0.5%, 7300-approaching rise is nothing to sniff at, it doesn’t compare to the gains seen in the Eurozone. As, despite the increasingly appearances of the Greek debt crisis on the newswires, the DAX and CAC managed to surge by 1.1% and 1.5% this Monday, in part boosted by the weakened euro.