Steady as she goes
The Pound continues to flounder against the Dollar. Even days like yesterday where we see a steady appreciation of the Pound to Dollar, it is eroded very quickly as we open up this morning. A sign of the difficulty that the GBP is having in gaining traction against the sentiment. The story against the EUR was a little more emphatic, where the UK currency lost ground in almost a straight line all throughout the day.
As discussed, the economic data landscape yesterday was much lighter than we have had in the days preceding. Consequently, the result on the currency movements was far more subtle and, thankfully, less erratic. To the Eurozone, where the Greek Prime Minister has been meeting a number of the political leaders of European nations in order to negotiate and arrive at a possible conclusion to the impasse that started talks of a possible Greek exit. Some of the focus for the discussions has been regarding the Greek pensions and deep cuts proposed to them to part fund their repayments. Greek Prime Minister, Alexis Tsipras, has suggested that if flexibility was offered around the pension cuts, then they may be able to make their payment.
Today’s data starts with the Swiss unemployment rate, which has arrived already today and was reported as flat to forecast and the same as the last delivery at an enviable 3.3%. Next of note, we look to the UK Trade Balance which gives an insight into the net difference between importing and exporting. In a simplified, FX-centric view, the UK would be eager to see a shrinking of the gap between net imports and exports given that this would represent either a reduction in importing or, more favourably, an increase in exporting which is Pound positive. The EUR GDP figure is also due today, and is forecast flat. To close off we have a range of tertiary tier US data looking at business optimism which would act as mild indicators for their outlook.