Continued volatility in GBP/USD
Sterling recovered some of its losses and reached 1.5186 in the early hours of today when UK Nationwide Housing Prices year on year came in better than expected, 1.1% vrs 0.9%.
13:30 sees the big event of today which is the release of Q1 GDP figures from the US. This is expected to come in unchanged from the first estimate at 2.5% Q/Q annualised. However, a deviation from this could mean we see another big move in GBP/USD and EUR/USD.
GBP/EUR starts the day much like yesterday hovering just under the 1.1700 mark. This follows yesterdays mix of data which saw the Pound weaken to 1.1630 before recovering to its current levels.
Big rumours on the market suggest that Mario Draghi has lost support for further rate cuts in the Eurozone which could add strength to the Euro. Set in the backdrop of an uncertain stance from the Federal Reserve on how and when they will reduce their QE program, we could see EUR/USD heading towards the 1.30 mark.