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Sterling lacks direction

26th June 2018 Market Update

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?? GBP – From the UK yesterday, data was at a premium with Sterling finding it hard to find any real clear direction against its major trading partners. One main reason citied was the lack of clarity in relation to any positive Brexit talks taking place. From the UK today, we have data in the way of MPC member Ian McCafferty speaking at 10:30am.

?? EUR – From within the Eurozone all is quiet with the single currency, just like the British pound, finding it hard to find any real upside against a buoyant US dollar. That being said, the euro still remains vulnerable to regional political instability as German Chancellor Angela Merkel faces pressure to deal with the migration dispute that has divided Europe and threatened her own government. We have no major data from within the Eurozone today.

?? USD – The Greenback continued to power ahead against a basket of currencies including the euro on Monday as Donald Trump’s trade tariffs continue to see the US dollar make gains amid growing tensions. It seems that the US dollar is the weapon of choice for investors of late, with further rate hikes being seen in the United States this year and higher inflation. Further gains could be seen into the summer months. From the United States today we have data in the form of the Richmond Manufacturing index, following two FOMC members speaking.

 

Key Announcements

?? GBP
09:30am: MPC member Ian McCafferty

?? USD
14:00pm: Richmond Manufacturing index 15-16

 

Summary: Sterling trades sideways on limited data. Trump trade tariff continues to see greenback gains against majors.

 

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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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