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UK PMI manufacturing edged lower than forecasts but the markets was focussed on global developments. Sterling was supported below 1.2300 and gradually regained ground as the US Dollar was subjected to selling. There were also doubts that the Bank of England would be able to relax monetary policy. As gains…
The early morning session has seen USD reverse recent trends, as rekindled inflation fears flooded the market due to an unexpected oil price surge. OPEC+ surprised all by announcing they planned to cut output by up to 1.16 million barrels per day. This news led to a sharp 6% rise…
Find out how the major currencies have been performing and what movement we could see in the days ahead with our weekly exchange rate update. EUR – Euro Bolstered by Positive Data The Euro got off to a positive start this week, with stability in the European banking sector,…
USD The Dollar has been trending cheaper this week with -0.7% growth against the Euro and -0.82% growth versus Sterling. Q4 GDP figures were released just below forecasts at 2.6% from predictions at 2.7%, jobless claims were also slightly higher than forecasts at 198K. Volatility could come from the data…
Due today, the US will reveal its latest GDP update. The expectation is that the US economy grew 2.7% in Q4 with a stable GDP price index at around 3.9%. Preliminary March inflation readings in Spain and Germany will be closely watched today. Regarding EUR/USD, economists at ING expect the…
Currency update – Market movers EUR/USD: trades just under 1.0850 due to a weaker dollar which stems from uncertainty in the banking sector and fears of a potential recession, despite US consumer confidence strengthening overall. The expectations index is still pointing towards a potential recession as it has been below…
UK CBI retail sales beat expectations for March. Bank of England Governor Bailey stated that further tightening would be required if inflation is persistent, adding that monetary policy must ensure that inflation from abroad does not become long lasting. Bailey added that the full effect of higher interest rates are…
The UK PMI manufacturing index for March dipped back into contraction and the services-sector index printed a slight decline but was still positive. Overall business confidence strengthened to a 12-month high as supply-side difficulties and delivery times declined by the largest monthly amount since 2009. Output prices grew by the…
Find out how the major currencies have been performing and what movement we could see in the days ahead with our weekly exchange rate update. EUR – Euro Rebounded as Europe’s Banking Sector Stabilises After some initial jitters following the UBS-Credit Suisse takeover, the Euro rallied sharply this week…
USD Sentiment remained weaker for USD with -2.37% growth against the Euro and -1.8% versus the Pound this week. US jobless claims data did not suggest significant changes in the labour market. Further concern for the US outlook came as Powell suggested caution over credit conditions. The Durable Goods Orders…