The UK economic news has been thin on the ground this week with nothing released yesterday and no UK releases today either. As you can see from the economic calendar it is quiet across the board with only three European data announcements to speak of today. From this you would expect the global currency markets [...]
Risk remains very much the driving force for FX markets as they fret about the extent of slowdown in the US economic recovery and the state of the global economy. Concerns about Eurozone peripheral economies have also intensified again, putting additional pressures on the euro and preventing it from benefiting from Friday’s news of stronger than expected Q2 GDP growth. As result we have the weaker EUR and stronger USD.
There has been little reaction to the manifestos, either because they are both empty documents, or no-one actually thinks anything in them which proves problematic will ever be implemented. What did make a difference yesterday was a surprise narrowing in the trade balance deficit.