bank of england

Return of the pound

17th April 2018 Market Update

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🇬🇧 GBP – The pound traded higher against both the US dollar and single currency before a key piece of data today from the UK in the way of the ILO unemployment numbers and hourly average earnings. It seems the pound’s good run of late could be tested by less than impressive figures.

🇪🇺 EUR – From the Eurozone on Monday the single currency traded higher against its major trading partners despite a quiet day on the data front. A possible uptick of monetary policy and further talk of inflation rising from within the Eurozone was cited as a catalyst for the euro to trade higher against the greenback. We have no major economic data from the Eurozone today.

🇺🇸 USD – From the across the Atlantic the dollar remained at lower levels against a basket of currencies on Monday as domestic retail sales in March rose following three months of declines but failed to dispel some traders’ worries about economic growth cooling.

The Federal Reserve will likely gradually raise interest rates three or four times in total this year and could aim to eventually raise the policy rate to about 3 percent, New York Fed President William Dudley said in a television interview on Monday. Many still think the chances of three to four rate hikes seems high though with two hikes, one in the summer and another towards the end of year, a much stronger possibility. Today from the United States we have data in the way of the industrial production figure at 1:30pm.

 

Key Announcements

🇬🇧 GBP
08:30am: Average earnings 2.8%, previously 2.8%
08:30am: Claimant count 11.6k, previously 15.1k
08:30am: ILO Rate 4.2%, previously 4.3%

🇺🇸 USD
13:15pm: Industrial production (MoM) expected at 0.4%, previously 0.9%

 

Summary: Sterling continues impressive run against G10 pairings before today’s unemployment jobs report.
 
The dollar remained at lower levels against a basket of currencies on Monday as domestic retail sales in March rose following three months of declines.

 

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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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