Germany keeps the Euro afloat
In Germany first quarter German GDP increased by 0.1% from the previous quarter, however, it contracted by 0.3% on an annualised basis. Market research company GfK reported consumer sentiment will rise to the highest level in more than five years in June as low unemployment and receding inflation encourages households to spend. The results conspired to keep Euro strong against Sterling with GBP/EUR ranging around the mid 1.1600 mark. Tomorrow brings a raft of data from Germany, including the consumer confidence figures. Expect GBP/EUR to be fairly volatile tomorrow.
In the US, new orders for durable goods rose more than expected in April adding to the strength of USD. GBP/USD continues to hold around the $1.51 level, pushing up to $1.5156 yesterday before easing back early this morning.
This afternoon we have some consumer confidence data from the US which could force a change in the currently range bound GBP/USD.