Sterling Drops to 2019 Low Vs Dollar

31th May 2019 Market Update

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🇬🇧 GBP –  Sterling remained under selling pressure yesterday making new lows versus both the US dollar and the euro as continued concerns over the Tory leadership and the game of Brexit Deal-or-No-Deal still drags on.

Data this morning from Nationwide showed that house prices only rose by 0.6% in April, below markets estimates for 1.2% growth. No significant data out today.

🇪🇺 EUR – The only data out yesterday saw inflation in Spain increase by 0.2% – better than the forecasted 0%.

German inflation figures are due out in the afternoon, forecasted to show it slowed to 1.6% in May down from 2% in April.

🇺🇸 USD –  The dollar remained relatively unchanged as US growth in the first quarter slowed from initial estimates to 3.1% down from 3.2%.

President Trump shocked markets last night when he tweeted that he will impose 5% tariffs on all Mexican imports gradually increasing to 25% unless illegal immigration into the US stops.

This afternoon we have personal income, spending and expenditure figures, often seen as the real measure for inflation.

 

Summary:

GBP: Continuing political worries cause pound to drop
EUR: German inflation in focus today
USD: US slaps tariffs on Mexico


 

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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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