Dollar falls, euro capitalises

4th April 2018 Market Update

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🇬🇧 GBP – Yesterday the pound was given a slight boost early in the trading session following positive manufacturing figures. For the rest of the day it remained very rangebound.

Today only construction PMI is to be released for the UK, though little impact is expected.

🇪🇺 EUR – Yesterday manufacturing for Europe came in as expected, which meant it had little impact on the market.

Today looks set to be a better day for the euro with inflation expected to rise and the unemployment rate expected to drop. After a tough few weeks, this could kick start some more positive sentiment around Europe.

🇺🇸 USD – The dollar lost some ground yesterday, particularly against the euro. This could be put down to risk aversion, given that the Dow was down by more than 500 points from the previous evening.

The weekly employment change figures are expected to fall slightly today, but this probably won’t have much impact. Durable goods orders, however, could have an impact but there is no consensus on the outcome.

 

Key Announcements

🇬🇧 GBP
09:30am: PMI Construction – expected to fall slightly from 51.4 to 50.8

🇪🇺 EUR
10:00am: CPI – expected to raise from 1.1% at 1.4%
10:00am: Unemployment rate – expected to fall to 8.5% from 8.6%

🇺🇸 USD
13:15pm: ADP Employment change expected to drop to 205k
15:00pm: Durable goods orders – no market expectation releases

 

Summary: It was a slow day yesterday across the board with the big loser being the dollar against the euro, following the Dow’s fall the previous day.

 

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Darren Kilner

Darren Kilner

Darren is Head of Dealing at FairFX. Darren lives and breaths FX, his Mastermind topics are G8 currencies and economic forecasts.

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