With a slight gain made against the dollar yesterday, but losses seen against the euro, GBP had something of a mixed day. The one very positive thing seen yesterday, however, was data released showing that the UK’s unemployment rate is now sitting at its lowest level since 2008 having fallen by 154K – this now means that there are a mere 1.97 million people out of work in the United Kingdom. On average, weekly earnings are also on the up – having come in at 0.9% as opposed to the predicted 0.8%. Whilst this is great for the UK’s labour market, what the UK really needs to see is improvement across other sectors too to be able to gain some much needed currency traction.
The euro saw gains against the dollar yesterday but this was more due to the fact that US retail sales came in disappointingly. We only saw German CPI numbers out yesterday which came in at the predicted 0.8%, aiding EUR somewhat. Germany did, however, cut its 2014 growth forecast which may very well have a negative impact on the single currency in the near future.
Retail sales were of main concern for the States yesterday as they missed the forecast (-0.1%) to come in at -0.3% - the knock-on effect then being a drop in value for USD. The Fed’s Beige Book report added to the concern by indicating that the US is only seeing ‘modest to moderate’ growth. On the whole, though, the US economy isn’t looking too bad and if further positivity is seen it could mean that they will be the first major economy to raise interest rates.
FC Exchange is a trading name of Foreign Currency Exchange Limited. Registered office: Salisbury House, Finsbury Circus, London, EC2M 5QQ. Registered No.5452483. Authorised by the Financial Conduct Authority (No.511266) under the Payment Service Regulations 2009 for the provision of payment services. HM Revenue & Customs MLR No.12215508. Copyright © 2013 Foreign Currency Exchange. All Rights Reserved.
Recommended Content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.