Sterling Continues to Struggle as Uncertainty Continues

30th May 2019 Market Update

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🇬🇧 GBP –  Wednesday followed on from Tuesday in having very little data out for the UK. As a result, exchange rates remained relatively stagnant and sterling remained under pressure. This will continue until there is more clarity with regards to the political situation in the UK. MPs in support of hard Brexit remain the favourites to win the Tory leadership election, with Boris the front runner despite being summoned to court. Today there is no data of note being released from the UK.

🇪🇺 EUR – Yesterday CPI came out below expectations from France, and GDP in line with expectations at 0.3%. Consumer spending did rise above market expectations though rising to 0.8%, when previously it had shrunk by 0.3%. Overall this had minimal impact on the euro. Today is Ascension Day meaning there will be bank holidays in a lot of Europe, including France and Germany. If you need a payment made to Europe today, please check with your dealer just in case.

🇺🇸 USD –  Like the UK and Europe, the US followed the trend on Wednesday with no data being released. This afternoon preliminary GDP is being released. This figure is expected to be around the 3.1% level and will realistically allow the US dollar to continue its bullish run. Unemployment claims are also being released and are forecast to be slightly higher than last month’s reading.

 

Summary:

GBP: Sterling remains in turmoil as political uncertainty remains
EUR: Ascension Day means bank holidays in a lot of Europe
USD: Eyes on US as GDP figures released this afternoon


 

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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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