GBP: Sterling retains its stronger position
EUR: Currently rangebound with little news from the Eurozone
USD: Dollar volatility could continue depending on the CPI data today
GBP
There was no data of note from the UK yesterday. However sterling was able to hold on to its recent gains, with rates predominantly remaining range bound. This morning we had preliminary GDP figures for last quarter, which showed that the UK’s economy shrunk by 1.5%. This was roughly in line with market expectations, therefore there was minimal rate movement in response. Construction output, manufacturing production and industrial production all exceeded last months figures, potentially indicating at the accelerated economic growth round the corner.
This afternoon Bank of England Governor Andrew Bailey is speaking at an online event, however this is unlikely to cause any market movement.
EUR
The German ZEW economic sentiment was released yesterday morning, with the reading exceeding the previous figure. Once again this data had minimal market impact. This morning German Final CPI was released in line with the expectations of 0.7%, and French Final CPI was released slightly lower than the previous reading at 0.1% (as opposed to 0.2%).
The euro seems to be moving more as a by product of other currencies at the moment, with it predominantly remaining range bound when there is little data.
USD
Yesterday there was no significant data from the US. A number of FOMC members spoke at events, however this seems to have had no impact on the currency markets.
The monthly CPI reading is being released this afternoon. If the reading is higher than the market’s expectations, we could see this fuel the growing concerns about inflation in the market. Therefore depending on the data released we could see the dollar continue its recent volatility streak.
Market rates
Today’s interbank rates at 09:11 against sterling. Movement vs yesterday.
| Euro | €1.164 ↑ |
| US dollar | $1.413 – |
| Australian dollar | $1.810 ↑ |
| South African rand | R19.79 ↑ |
| Japanese yen | ¥153.7 ↑ |
Have a great day everyone.
