Are we in recession? We find out this morning | Smart Daily Currency Note
GBP/USD – 1.5312
The announcement that the government’s Funding for Lending scheme (the scheme designed to give the economy a boost by encouraging banks to lend to businesses and households) is to be extended lent support to sterling yesterday, trading in a half-a-cent range as everyone looked ahead to today’s preliminary first quarter growth figures. While only preliminary, the UK’s growth figures, are being viewed with great anticipation as they will show whether or not the UK has slipped back into recession. The general consensus is for 0.1% growth, if we see any deviation from this figure expect to see considerable movement. Call in now to find out the verdict and for a live rate.
The US dollar has weakened overnight against both the US dollar and the euro. Orders for American Durable Goods fell by almost 6% in March, almost twice of what was expected, whilst Capital Goods Orders – often a barometer for future business investment – grew at a slower pace than analysts had anticipated. With demand for these US products faltering, this data may be seen as highlighting a further slowdown in private sector consumption. First quarter GDP figures are released on Friday and it will be interesting to see if they support a more gloomy outlook for growth in the world’s largest economy going forward. Today, Unemployment Claims data will be the main release, so be in touch with your trader to discuss how this affects the US dollar price throughout the day.