Buoyant Stock Market Strengthens Dollar

24th April 2019 Market Update

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?? GBP -  There was no significant data released from the UK yesterday. However, sterling remained relatively stable. It was revealed by the US commodities Futures Trading Commission that for the first time since June 2018 that the ratio of long and short positions turned marginally in favour of positive bets. That was in response to better than expected GDP data, which highlighted the resilience of the UK’s economy.

Today the only data of note from the UK is public sector net borrowing, however this is unlikely to impact the market. There are also rumours that Theresa May could once again table her withdrawal agreement to Parliament as early as next week.

?? EUR - There was no data of significance from the eurozone yesterday. The euro did weaken against the dollar and stayed within its current ranges against sterling. This morning the German Ifo business climate index was released. This came out below market expectations however has had minimal impact on the euro. This is an indicator of economic health, and the sentiment can be an early indicator to future economic activity, such as spending, hiring and investment.

?? USD -  The dollar strengthened yesterday as the S&P 500 and Nasdaq closed at record highs. The dovish tones of the Fed have led to less concerns that there will be interest rate rises this year. The stock market was also buoyed by a string of positive earnings reports, and the news that the US would end sanction waivers on Iranian oil exports.

With regards to data, there was no data of note from the US yesterday. Today the only thing worth mentioning is crude oil inventories being released this afternoon.

 

Summary:
GBP: UK prospects brighten as hedge fund attitudes to sterling change
EUR: German Ifo business climate is released below expectations
USD: Dollar strengthens as S&P 500 and Nasdaq rally to record close

 

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