uPound News: Pressure to Drop Brexit Negotiations Leaves Sterling Weak
After a brief attempt at a rebound at the beginning of the week, the Pound was one of the market’s most poorly performing major currencies yesterday, tumbling against most major rivals as Brexit uncertainties weighed.
Conservative MPs pressured the government to abandon cross-party Brexit negotiations, while yesterday’s UK job market data saw unemployment improving, although wage growth disappointed and overall the data failed to support Sterling.
No more notable data will come in for the remainder of the week, so potential developments in Brexit and UK politics will only see increased focus as next week’s key EU elections approach.
Euro News: Eurozone Economic Sentiment Miss Weighs on Shared Currency Appeal
Demand for the Euro weakened a little towards the end of yesterday’s session, but the shared currency was still able to hold most of its recent gains against the Pound thanks to some stronger-than-expected German wholesale prices data from April.
The day’s other Eurozone data was mixed and pressured the Euro’s potential for gains. German and Eurozone economic sentiment data from ZEW fell short of expectations due to lasting market jitters regarding global trade tensions.
Some of this week’s most influential Eurozone data will be published today, including growth rate projections for both Germany and the Eurozone. Eurozone employment change data will be published as well.
US Dollar News: Pause in Trade Jitters Helps USD Rebound
Despite a lack of fresh supportive US news or data yesterday, the US Dollar saw a slight rebound as investors relaxed a little about the US-China trade war.
US President Donald Trump made fresh comments expressing confidence that a good US-China trade deal would eventually be reached. As trade war jitters softened for the day, investors sold the US Dollar again.
Some of this week’s most notable US data will be published today, including retail sales, manufacturing and industrial production stats from April. If they surprise investors they could influence Federal Reserve interest rate hike expectations.
Canadian Dollar News: Higher Oil Prices Extend CAD Rebound
Optimistic US-China trade comments from US President Donald Trump helped the trade-correlated Canadian Dollar rebound slightly yesterday and pushed GBP/CAD lower, but other factors helped the ‘Loonie’ to hold its weekly highs versus Sterling.
Oil strengthened, making it easier for the crude-influenced Canadian Dollar to hold its ground.
Anticipation about today’s upcoming Canadian inflation report is also helping the Canadian Dollar to avoid losses. If inflation beats forecasts, Bank of Canada (BoC) interest rate hike bets would rise and the CAD would strengthen.
Australian Dollar News: AUD Strength Remains Limited amid RBA Interest Rate Cut Bets
The Pound to Australian Dollar exchange rate slipped yesterday, but continued to trend above the week’s opening levels. US-China trade hopes have not been enough to make the Australian Dollar appealing.
Investors remain hesitant to buy the Australian Dollar amid concerns about China’s economic outlook due to the close trade links between the nations, as well as rising market bets that the Reserve Bank of Australia (RBA) will cut Australian interest rates twice in the coming year.
Australian Dollar investors are likely to await tomorrow’s Australian job market report rather than reacting too strongly to this morning’s consumer confidence and wage price data. US-China trade negotiations may also prove influential.
Wednesday, 15th May
01:30 Australian Westpac Consumer Confidence
02:30 Australian Wage Price Index
07:00 German Growth Rate
07:45 French Inflation Rate
10:00 Eurozone Employment Change
10:00 Eurozone Growth Rate
13:30 Canadian Inflation Rate
13:30 US Retail Sales
14:15 US Manufacturing and Industrial Production
15:00 US Business Inventories
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Director Sales and Dealing