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Pound Dented by Weaker-Than-Anticipated UK GDP Estimate

Pound News: Signs Continue to Point Towards Weakening UK Growth

Confidence in the Pound (GBP) was knocked once again as the NIESR gross domestic product estimate for the three months to March proved weaker than anticipated.

With economic growth now thought to have eased to just 0.2% in the first quarter, thanks in part to adverse weather conditions, the appeal of the Pound naturally diminished.

Even so, if the Bank of England (BoE) credit conditions and bank liabilities surveys paint a more encouraging picture of the domestic outlook this could shore up GBP exchange rates today.

 

Euro News: Draghi Speech Failed to Provoke EUR Exchange Rates

European Central Bank (ECB) President Mario Draghi’s speech proved to be something of a non-event yesterday, having a limited impact on Euro (EUR) exchange rates.

As Draghi failed to offer any particular indications regarding the central bank’s monetary policy outlook this limited the volatility of the Euro.

However, if March’s ECB meeting minutes prove a little more hawkish in nature this could encourage the single currency to push higher across the board.

 

US Dollar News: USD Gains Forecast on Improved Jobless Claims Figures

While the US consumer price index picked up in line with forecasts this failed to boost US Dollar (USD) exchange rates.

The mood towards the US Dollar remained generally muted ahead of the release of the Federal Open Market Committee’s (FOMC) March meeting minutes.

This afternoon’s jobless claims data could improve the appeal of the US Dollar, providing the US labour market shows fresh signs of tightening.

 

Canadian Dollar News: Bullish Oil Prices Continue to Support CAD

The latest bullish run in oil prices continued to benefit the Canadian Dollar (CAD) yesterday, with Brent crude trending above US$72 per barrel.

With Saudi Arabian officials noting that much of the global oversupply glut appears to have been cleared investors were encouraged to pile back into the commodity.

A solid showing from the latest Canadian new housing price index may give CAD exchange rates an additional boost today.

 

Australian Dollar News: ‘Aussie’ Unmoved by RBA Comments

Even though Reserve Bank of Australia (RBA) Governor Philip Lowe reiterated that the next move in interest rates is almost certain to be up this was not enough to boost the Australian Dollar (AUD).

As any policy tightening still looks to be a rather distant prospect investors took little encouragement from Lowe’s words, instead focusing on a weaker Westpac consumer confidence index.

If global geopolitical or trade tensions continue to mount AUD exchange rates are expected to remain on a weaker footing ahead of the weekend.

 

Upcoming Data

Thursday, 12 April

09:30     Bank of England Credit Conditions and Bank Liabilities Surveys

10:00     Eurozone Industrial Production

12:30     European Central Bank Meeting Minutes

13:30     Canada New Housing Price Index

13:30     US Jobless Claims

 

Michael Vaughan

Currency Dealer

mgv@fcgworld.co.uk

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