rates table

Sterling under pressure as Boris remains favourite

28th June 2019 Market Update

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🇬🇧 GBP –  There was no data of significance from the UK yesterday. Despite this sterling, remained under pressure, with some political commentators stating the wheels could be starting to fall off the Boris Johnson bus, although he remains the firm favourite in the Tory leadership election. Today the current account is being released at 9.30am along with final GDP – which is expected to come in at 0.5%.

🇪🇺 EUR – CPI came out significantly below market expectations at 0.4% from Spain yesterday. This had a minimal impact on the euro as German CPI slightly exceeded expectations, rising from 0.2% to 0.3%. This morning prelim CPI was released from France at 0.2%, again above market expectations. CPI and core CPI for the eurozone are being released at 10am. With the German and French CPI’s exceeding expectations, this could also be the case for the overall figure. A higher reading could lead to some more euro momentum.

🇺🇸 USD –  Final GDP came out inline with the market expectations yesterday with a reading of 3.1%. As this was the final figure in the reading it had a minimal impact on the dollar. This afternoon core PCE price index is released from the US. This is an indicator of inflation; however, it differs to CPI as it only measures goods and services targeted towards and consumed by individuals. Later this afternoon Chicago PMI and consumer sentiment data is then announced at 2.45pm and 3.00pm respectively.

 

Summary:

GBP: Sterling remains under pressure as Boris appears to lose a bit of momentum

EUR: The euro gains some momentum with positive CPI readings from Germany and France

USD: Final GDP in line with expectations at 3.1% keeps dollar firm


 

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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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