3rd May 2018 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 – The pound has dropped off in value against most major currencies over the past week or so, with Sterling dropping to the lowest point we have seen against the dollar in the calendar year.
The first reason for the drop is the recent slump in economic data. As we’ve mentioned in previous reports, analysts had expected a drop off in productivity for the first quarter of 2018 due to the “poor weather” that we had in the first few months of the year, but they didn’t expect to see the numbers this low.
Inflation unexpectedly dropped down to 2.5%, its lowest level in a year.
🇪🇺 EUR – From the Eurozone on Wednesday the single currency took its direction from comments set by the FOMC late last night. The euro at present looks to have broken through a key support level, there could be further downside if tomorrow’s US jobs report comes in against the euro. That being said at present there isn’t really much out from Europe as the UK and US are taking a lead on the political and economic front. From the Eurozone today, we have data in the form of the inflation numbers, if received positively we could see the euro trade higher against the greenback.
🇺🇸 USD – The dollar traded below a four-month high against a basket of currencies on Thursday, with the focus shifting to economic data after the Federal Reserve did little to alter market expectations for further interest rate rises this year. From the US today we have data in the way of initial jobless claims.
08:30am: PMI Services expected at 53.5, previously 51.7
09:00am: Inflation YoY expected at 0.9%, previously 1.0%
12:30pm: Initial jobless expected at 225,000, previously 209,000
Summary: Sterling continues sell off amid BoE rate concerns, dropping to the lowest point we have seen against the dollar in the calendar year.
FOMC is leaving interest rates on hold. The single currency took its direction off the back of these comments.
Find out more about our Money Transfer 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.