- We saw sterling make impressive gains against the US dollar and the euro yesterday despite the only piece of high impact UK data, services PMI, coming in ever so slightly softer than expected at 53.2 vs 53.5 expected.
- GBP/USD opened the day at 1.2928 but then we saw the market rally by just under 0.8% to close up at 1.3030. GBP/USD is trading at its highest level for just under three weeks.
- GBP/EUR also moved higher closing at 1.0938 representing a 0.68% daily increase in the value of sterling against the euro.
- These moves are thought to be driven by technical considerations at present. (PoundSterling)
- Sterling still has a long term negative bias but we have seen both markets rebounding from respective support levels in recent days.
- Yesterday afternoon we saw factory orders m/m from the US coming in as expected at -3.3%.
- Overnight we saw Australian GDP q/q come in as expected at 0.8%.
- GBP/AUD is trading slightly up on the day but within its recent range at 1.6316 and GBP/NZD is trading at 1.8013 with GBP/JPY trading at 141.68.
- We have a very quiet morning ahead with no economic data of note to look forward to.
- This afternoon we can look forward to data from Canada in the form of trade balance and labor productivity at 1.30pm and the release of the BOC rate statement and overnight rate at 3pm.
- From the US we expect trade balance data at 1.30pm and ISM non-manufacturing PMI at 3pm.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|13:30||CAD||Labour Productivity q/q||0.9%||1.4%|
|15:00||CAD||BOC Rate Statement|
|15:00||USD||ISM Non-manufacturing PMI||55.8||53.9|