16th May 2017 Market Update
Get a snapshot of the day’s most important market events and currency movements sent straight to your inbox every morning. Sign up to our Daily Market Report.
🇬🇧 GBP – Inflation is in focus today, with the headline figure forecast to pick up to 2.7% from last month’s figure of 2.3%. This is the first of a hat-trick of important data releases which will give a window into the current picture and also give an indication of future economic prospects. After today’s CPI figure we have tomorrow’s average earnings figure and on Thursday we have retail sales.
🇪🇺 EUR – Continues to bask in optimism, after shaking off uncertainties relating to the French elections. The Eurozone economy is at it’s strongest since the European debt crisis of 2010 and can now take centre stage. German ZEW Economic Sentiment is expected to hit its best levels since August 2015 today, as renewed vigour returns to the single currency bloc.
🇺🇸 USD – After enjoying a prolonged bull run since the turn of the year, the dollar has been struggling the last few weeks. Initially the weakness was linked to Trump’s troubles with negotiating congress but it has since moved to the health of the economy, with recent data releases being lacklustre. Dollar index is now below 99, the index’s lowest since November.
9:30am – Inflation Readings.
10:00am- GDP q/q, German ZEW Economic Sentiment.
13:30pm– Building permits.
Our View: With the perceived ‘non-event’ of the UK general election a few weeks away, currency markets are extremely calm. Economics seems to have come back into the front seat since French elections were completed. The euro is well positioned to enjoy further tailwinds, as the economy continues to show signs of rude health. It may be in line to strengthen further against the dollar, against which it has been long perceived as undervalued against.
Find out more about our FX Dealing Service for personal & business international payments. We’re committed to giving all clients the best rate possible, along with flexible and personalised service. Save time and money by reducing risk through a simple and efficient service.