27th April 2018 Market Update
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🇬🇧 GBP – On the back of the cautious tone from the European Central Bank, the pound benefited climbing to a week high against the euro. Versus the dollar, the currency’s attempted advance in the afternoon proved to be short lived with the pound remaining at a one month low.
Today’s highlight will be the preliminary estimate of economic growth for the first quarter. We could well see a drop in economic performance as a result of the ‘Beast from the East’ and its sidekick the mini ‘Beast from the East’. BoE Governor Mark Carney and MPC member Andy Haldane are due to make a speech in the afternoon also.
🇪🇺 EUR – In what was supposed to be the highlight of the week, Mario Draghi disappointed investors seeking clues as to when the reduction of the much-awaited reduction in monetary stimulus will happen. Instead Draghi concentrated on economic growth softening in the first quarter.
As a result, the euro weakened across the board, falling to its lowest level against the dollar for 2018 and a one week low against the euro.
No news out today from the Eurozone.
🇺🇸 USD – No major news yesterday from the US but the dollar continued to be in demand as 10-year treasuries continue to offer high yields to investors.
First quarter growth estimates are due out in the afternoon, forecasted to show a slowdown which could take some of the shine off the dollar’s strong performance this week.
The US dollar index is currently at its strongest level since mid-January 2018.
09:30am: Preliminary GDP Q1 – expected to drop to 0.3%
15:00pm: Mark Carney Speech
15:15pm: Member Andy Haldane Speech
13:30pm: Preliminary GDP Q1 – expected to drop to 2.6%
Summary: Draghi refrained from talking about monetary policy and held a cautious tone about the health of the Eurozone economy.
Sterling moves proved to be volatile; swinging in a one cent range versus the dollar but climbing to a one week high versus the euro.
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