- Sterling gained ground on the euro and US dollar yesterday as we had more better-than-expected data from the UK.
- As we have mentioned in previous newsletters, UK data is being closely watched by investors as they try to get a better understanding of when the Bank of England will next hike interest rates.
- UK retail sales m/m came in at 1.4% vs 0.4% expected and as a result we saw GBP/EUR and GBP/USD rally to the highest levels since mid/late February.
- GBP/EUR closed the day up 0.42% after closing at 1.1608 and GBP/USD closed the day up a third of a percent after closing at 1.2520.
- The increase in GBP/USD was helped along by weaker than expected unemployment claims from the US. The expected figure of 240K was missed with the official figure coming in at 258K.
- US new home sales beat expectations at 592K vs 566K.
- New Zealand trade balance data came in at -18m when 160m was expected.
- GBP/NZD rallied on the bank of this and is now trading around 1.7820 with the next significant level to the upside being at 1.79.
- This morning was saw PMI data released from Europe with French, German and Eurozone manufacturing and services PMI coming in firmer than expected.
- We have CPI m/m from Canada m/m and US core durable goods orders m/m at 12.30pm.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|12.00||USD||FOMC Member Evans Speaks|
|12.30||CAD||Common CPI y/y||1.3%|
|12.30||USD||Core Durable Goods Orders m/m||0.5%||0.0%|
|12.30||USD||Durable Goods Order m/m||1.1%||2.0%|