The ECB meet today – expect euro volatility | Smart Daily Currency Note
This week (Last week)
GBP/USD – 1.5544 (GBP/USD – 1.5450)
Sterling ended yesterday at around the same level as the start of the week – firming up hopes that last Thursday’s growth figures could be the catalyst for a sustained period of recovery. Indeed, both Manufacturing and Construction Purchase Manager’s indices (PMI) exceeded expectations and although both continued to indicate a slight contraction, the data was enough to support sterling against most of its major peers. More positivity came as a report from the Bank of England revealing that British banks had eased housing credit restrictions and granted more home loans through March in excess of what many had predicted. Today sees the last of purchasing manager’s indices released with a small increase forecast for the services industry. Be in touch with your trader to see if sterling can find further gains into the long weekend.
The US dollar had a mixed week as a raft of data was released alongside comments from the Federal Bank who reiterated its commitment to keeping monetary policy ultra-loose until the labour market recovers to such an extent that the overall rate of unemployment drops to 6.5% (now around 7.5%). With mixed labour data released so far this week, all eyes will be on today’s figures where we will see the release of the highly influential non – farm payroll data alongside the overall unemployment rate. The US Trade Deficit meanwhile shrank 11% to 38.8 billion dollars; it’s second lowest level in three years as imports dropped by the greatest margin since early 2009, with the decrease in the trading shortfall with China being a major catalyst. Call in now to speak to your trader and for an update on the market.
Sterling gains against the US dollar | Smart Daily Currency Note