rates table

Sterling recovers some losses

2nd July 2018 Market Update

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?? GBP – On Friday the UK’s final GDP figures and the current account deficit came in above expectations which allowed Sterling to recover some lost ground from overnight against both the euro and dollar. As it is the start of a new month, manufacturing PMI is being released today, followed by construction PMI Tuesday and services PMI on Wednesday. Depending on how the data reads, Sterling will act accordingly.

?? EUR – On Friday CPI and core CPI were released and they came out in line with expectations having minimal impact on the euro. Like the UK, manufacturing PMI is being released from across Europe this morning and is expected to read the same as last month’s reading at 55.0.

?? USD – There was no real data of note from the US on Friday, however the EU did warn the US that there could be a $300bn hit to the US economy over car import tariffs. This is further evidence that the trade war rhetoric is ramping up and Trump is not afraid to create an enemy of the EU.
Today ISM manufacturing PMI is being released from the US like in Europe and the UK and is expected to drop slightly like that UK.


Key Announcements

?? GBP
09:30am: Manufacturing PMI

?? USD
15:00pm: ISM Manufacturing PMI


Summary: The UK’s current account deficit and final GDP figures on Friday were both better than expected which allowed Sterling to recover some of the losses it had suffered from Friday evening. CPI came out in line with expectations from Europe having little market impact.
Today manufacturing data is being released from across Europe, the UK and the US. This week is jobs week, meaning the US will be in focus and there could be a lot of market volatility on Friday depending on what data is released.


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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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