Pound Stabilizes

10th May 2019 Market Update

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🇬🇧 GBP –  the pound managed to stabilize yesterday after what has been a difficult week. A positive finish to last week seen the pound finish at monthly highs, this trend quickly reversed at the start of this week as Brexit talks between Labour and the Conservative party broke down. Brexit has been the key driver all week, however with GDP figures out today the pound will have the opportunity to end the week on a good note. A key take-away of the week however is that big moves in the pound remain dependent on Brexit negotiations.

🇪🇺 EUR – The Eurozone has been relatively data starved all week, this can only be considered a positive however when taking account of the recent run the single market has been on. The markets have reacted with the EUR moving broadly sideways in a consolidated range all week.

🇺🇸 USD –  Trade wars have again surfaced between the US and China after a few months of cease-fire. Global equities – highly sensitive to the outcome of the talks between the two world superpowers – have been on the back foot all week. The latest to come out of Beijing and Washington this morning was more doom and gloom as US sanctions officially came into force at the stroke of midnight EST. Beijing has promised to hit back, suggesting there is plenty more scope for the conflict to heat up further.

 

Summary:

GBP: GDP figures today give opportunity to end tough week on a positive
EUR: Weakness reprieved in quiet week
USD: Trade war fears starting to re-surface


 

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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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