europe union building

Pound pressured across the day

29th June 2018 Market Update

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?? GBP – No data from the UK yesterday, though the pound fell across the board as the EU summit got underway, where Brexit talks were top of the agenda. However, the Irish border discussions, which the EU wanted to discuss in this summit have been pushed down the line with time running out for a resolution to be found. BoE member Andy Haldane also spoke yesterday about how his choice to vote for a hike shouldn’t be surprising as the most recent member of the MPC to vote for a rate hike. His new more hawkish stance gives more hope for a rate hike in the MPC’s next meeting.

Only GDP will be released today which is expected to remain at 1.2%. Any improvement will further add to interest rate hike pressures.

?? EUR – For the most of the day the euro remained pretty flat against the pound whilst it pushed a little higher versus the dollar. Consumer confidence remained.

Today CPI will be released from Europe which is expected to increase to 2.0% – this should be positive for the euro.

?? USD – A relatively quiet day for the dollar, it did start to lose a little ground versus the euro. GDP was released lower but didn’t seem to have an effect on the market.

Today there will be no major releases from the States.

 

Key Announcements

?? GBP
09:30am: GDP – Expected to remain at 1.2%

?? EUR
10:00am: CPI – Expected to increase to 2.0%

 

Summary: The pound had a rough day yesterday, pressured across the day as European leaders met at the EU summit, where Brexit is one of the top items on the agenda. Losses were however limited as we heard some positive noises from MPC member Haldane also.

 

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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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