- Sterling failed to continue the momentum it had gained from Tuesday’s election announcement yesterday as GBP/USD traded below 1.2850 for the duration of the day and GBP/EUR traded below 1.20.
- A small pullback could not be written off going into yesterday’s session especially having seen such big moves by sterling the previous day and that is exactly what we saw.
- For GBP/EUR to move higher we need to see it breach the 1.20 mark and maintain that position – it touched that level on Tuesday before pulling back to the current area of around the 1.1930 mark.
- In the cable market, 1.29 was the high of Tuesday and in a similar fashion to GBP/EUR, the market has pulled back to the mid-1.28s. 1.29 is a significant level and it will be interesting to see if sterling can break above it or whether the market will settle in the recently more familiar 1.22 – 1.27 range.
- As expected UK PM May won parliamentary approval for a snap general election on June 8th with only 13 MPs voting against.
- May also said yesterday that the UK should be able to complete Brexit negotiations within two years and also ruled out a second referendum on EU membership.
- Final CPI from the Eurozone came in at 1.5% as expected.
- Last night we saw New Zealand CPI q/q come in slightly better than expected at 1% vs 0.8%.
- GBP/NZD is currently trading 1.8250 whereas GBP/AUD is at 1.7040.
- Today we have Philly Fed Manufacturing Index data along with unemployment data from the US at 1.30pm.
- Bank of England Governor Mark Carney is in Washington DC today where he participate as part of a panel in a Bank of France event after first speaking at the International Finance Policy Summit at 4.30pm.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|13:30||USD||Philly Fed Manufacturing Index||25.6||32.8|
|16:30||GBP||BOE Gov. Carney Speaks|
|18:15||USD||Treasury Sec Mnuchin Speaks|