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Sterling struggles

9th August 2018 Market Update

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?? GBP – Despite a lack of data, Sterling continued to slide yesterday as the market has fears over a no deal Brexit. There is no important data from the UK today.

?? EUR – Like Sterling, there was no significant data from the EU yesterday, and there is no data today.

?? USD – Yesterday the Dollar remained strong with all the political uncertainty between the UK and Europe. Today the key piece of data from the US is PPI and core PPI. The market is expecting a slight drop; however, a positive reading could allow the US Dollar to determine its bull run.

 

Key Announcements

?? USD
13:30pm: PPI m/m

Summary: There was very little data yesterday, however this did not halt Sterling’s slide to the lowest levels since October against the Euro and for one year against the US Dollar. Crude oil inventories were released in the afternoon from the US, although this had little impact on the currency market.
 
Overnight New Zealand opted to keep interest rates at 1.75% with the Reserve Bank of New Zealand saying economic growth had moderated. The New Zealand Dollar weakened as the statement said that rates would realistically remain at these levels going in to 2020.
 
Today the only thing of note is PPI and core PPI from the US. The market is expecting a slight drop on the previous reading. Exceeding market expectations could give the Dollar an opportunity to continue its bull run.

 

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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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