- We witnessed a mixed day for sterling yesterday as GBP/EUR pushed higher above 1.18 but with GBP/USD losing ground.
- GBP/EUR opened at 1.18 then dropped slightly to 1.1768 before rallying by just under 0.7% to close the day at 1.1857.
- On Friday we saw sterling break out of its recent range to the upside against the US dollar but this momentum cooled yesterday as GBP/USD came off by just under a a third of a percent to close at 1.2940.
- The US dollar gained across the board yesterday with EUR/USD gains from the French election outcome reversing during Monday’s session. EUR/USD had opened at 1.0997, briefly touch 1.1023 before falling away 1.0922 – a level within the range that the pair has been trading within for the past fortnight.
- The ECB’s Mersch claimed yesterday that the eurozone recovery is spreading by sector and geography whilst gathering momentum.
- In day that was very short of economic data, German factory orders m/m for March came in as expected at 1% whilst Halifax HPI m/m for the UK came in below expectations at -0.1% vs 0.1% expected.
- Australian retails sales m/m fell short of expectations at -0.1% vs 0.3% expected – this kept GBP/AUD’s upwards momentum so that it pushed above 1.75 for the first time since September 2016.
- Another slow day in terms of economic data releases ahead of us with only three pieces of data of note.
- At 10.30am we have the annual budget release from Australia before Canadian building permits m/m at 1.30pm and JOLTS job openings from the US at 3pm.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|10:30||AUD||Annual Budget Release|
|13:30||CAD||Building Permits m/m||4.2||-2.5|
|15:00||USD||JOLTS Job Openings||5.67M||5.74M|