- GBP/USD fell by 1% yesterday taken its record to 10 days of losses against the USD in the previous 11 trading days.
- Cable opened at 1.3755 but crashed past the 1.37 level to close at 1.3613.
- An already struggling pound was not helped by UK manufacturing PMI missing market estimates coming in at 53.9 vs 54.8 expected.
- Economic indicators have softened significantly in the latter part of April and the market is now far less sure of a rate increase in May and sterling has tumbled as the markets have priced this in.
- There was no data from Europe yesterday as a Bank Holiday was observed across the majority of the EU countries.
- GBP/EUR opened at 1.1394 and fell to close at 1.1350.
- UK net lending to individuals m/m missed expectations coming in at 4.2B vs 4.9B.
- In the afternoon Canadian GDP m/m came in better than expected at 0.4% vs 0.3%.
- ISM manufacturing PMI from the US came in at 57.3 vs 58.4 expected.
- New Zealand employment change q/q beat expectations at 0.6% vs 0.5% and the unemployment rate came came in as expected at 4.4%.
- GBP/AUD, GBP/NZD and GBP/JPY are all down with current rates of 1.8124, 1.9406 and 149.73, respectively.
- This morning we have construction PMI from the UK scheduled for release at 9.30am and is is followed by preliminary flash GDP q/q from the Eurozone at 10am.
- This afternoon we look to the US for ADP non-farm employment change at 1.15pm and this evening we have the the Fed’s rate decision and FOMC statement.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|10:00||EUR||Prelim Flash GDP q/q||0.4%||0.6%|
|13:15||USD||ADP Non-farm Employment Change||200K||241K|
|19:00||USD||Federal Funds Rate||<1.75%||<1.75%|