The rubbish they put on TV these days…
In a data light day, there was some positive news out of the UK economy as the Trade Balance figure for April came in better than expected. The data released showed a goods deficit of -10.53B, stronger than the -11.20B the market had estimated, revealing a silver lining to the weaker Pound. Rising exports for the economy should provide support for Sterling, especially after the strong industrial data released earlier this week.
There was a factual ITV programme last night, on a subject we all know. As in previous attempts at televised debates it fell short of being 100% informative and so far it has had no impact on the EU referendum betting markets. Beware the changing poll outcomes in the lead up to the 23rd of June.
German Trade Data showed exports had risen more than expected. GBPEUR was threatening to break below the 1.2700 level at market open before Mario Draghi inspired a Euro selloff. He did this by reiterating the dangers and lasting economic consequences of weak output, effectively increasing pressure for fiscal action to boost growth.
The Euro ended its recent good run against the Dollar yesterday, as the single currency lost 0.69% of its value against the Greenback. It opens this morning at 1.1316.
The Dollar strengthened versus Sterling by 0.4% during yesterday’s trading session after US Initial Jobless Claims (June 3) printed at 264,000, 6,000 fewer than expected. The Greenback ended the day against the Pound on 1.4461 as there was little data from the UK, leaving the USD to finish the day stronger against its peer. The US Monthly Budget Statement for May is due today and consensus is targeted at -$60 billion.
Data to watch: 7am German May CPI (month-on-month & year-on-year), Harmonised CPI (month-on-month & year-on-year), Wholesale Price Index (month-on-month & year-on-year) . 8am German Buba President Weidmann speech. 9.30am UK Consumer Inflation Expectations. 6pm US May Monthly Budget Statement.