bank of england

Sterling struggles to impress

4th July 2018 Market Update

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?? GBP – The pound struggled to break through key resistance levels on Tuesday despite a slight uptick in UK manufacturing after more negativity surrounding Brexit talks. It’s coming to the point where many are envisaging a no deal rather than a bad deal. From the UK today, we have data in the form of the PMI services numbers.

?? EUR – From the Eurozone yesterday, the single currency made small gains versus the US dollar despite average retail sales numbers. It seems to be the case that the euro at present looks to be falling behind the curve with seemly average data at present amid a buoyant US dollar. From the Eurozone today, we have data in the form of German and Eurozone PMI’s.

?? USD – The greenback traded lower yesterday against a basket of currencies on the US dollar index which currently stands at 94.5000 ahead of the US Independence Day today, after notching up three consecutive months of gains. Many cite the greenback’s recent strength of late purely down to three key factors. A clearer outlook for at least two rate hikes this year, continued trade tariff implementations and finally inflation.

 

Key Announcements

?? GBP
08:30am: Market Services PMI expected at 54, previously 54

?? EUR
07:55am: German PMI Services 54.5

?? USD
Independence Day

 

Summary: Sterling struggles to find footing despite manufacturing numbers.
 
US dollar continues to impress against its majors – today is Independence Day in the US.

 

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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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