Pound Still Rising Against The Dollar
Sterling continued its rise against the US Dollar yesterday as we saw month-long highs on the back of weaker than expected US figures and the pre-election uncertainty taking a bit of a back seat. Yesterday’s US PMI missed its target and although the figures were not particularly poor, they showed further softness in the US economy and were not as strong as the previous months figures.
As the election bandwagon rolls on in the UK, we have some important GDP figures coming out this morning. These figures are expected to show expansion in the economy, but yet again are not expected to be as dynamic as previous months. This is due to the speed with which the economy has grown in the last 18 months and a slight slowdown being inevitable. The message that David Cameron is struggling to convey is that the economy is improving even though many people feel worse off.
In Europe, we finally seem to have some light at the end of the tunnel and it appears that the Greek Finance Minister Yanis Varoufakis has been made the scapegoat for the so far unsuccessful talks. He appears to have been sidelined by PM Tsipras who has reshuffled his negotiating team and indulged in direct talks with Angela Merkel. He has been quoted as saying that an agreement will be reached by May 9th, which would be just in time for the next Eurogroup meeting.
Today’s headline figures are UK GDP and mortgage approvals, and US Consumer Confidence.