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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…
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…
The Pound rose after the higher than expected UK inflation data as it triggered speculation that the Bank of England would increase interest rates by 25 basis points to 4.25%. The CBI industrial orders index dipped below expectations with output and orders slowing in the three months to March while…
UK government borrowing data had some impact in undermining Sterling in early Europe. There was also further uncertainty surrounding tomorrow’s Bank of England policy decision with markets only pricing in around a 50% chance that there will be a further rate hike, especially given two committee members previously voting against…
An empty UK economic calendar meant risk conditions tended to dominate. Sterling held its own when equity markets came under sustained pressure early on, and when equities posted gains, the Pound kicked on despite doubts the Bank of England would increase interest rates this week. Sterling moved above 1.2200 against…
Cable (GBP/USD) is consolidating below 1.2200 in the morning session. The global banking crisis is leading to a cautious risk atmosphere in the market, ahead of the Fed and the BoE policy announcements later this week. Over in Switzerland, we have had an announcement this morning, with UBS taking…