Today's Highlights
Sterling slips on lower retail sales
UK GDP data should show upturn
FX Market Overview
Scotland started the Commonwealth games in the manner they would like to continue in and so did the English. Home crowd encouragement makes a real difference. Onward and upwards for the GB athletes.
It was a downward day for the Pound yesterday. Poorer than expected UK retail sales caused a sell off that dropped the Pound back below 1.70 against the US Dollar and half a cent lower against the Euro. There was also a lot of comment about the slowdown in the UK housing market and about the International Monetary Fund's downgrading of global growth forecasts. Today brings the 1st estimate of Quarter 2 economic growth. There is a lot of excitement about the economy having picked up to pre-crash levels but this is a very different sort of recovery; a slow recovery in fact and that is probably not a bad thing. Sustainability is the key word and Britain would definitely benefit from a long slow period of sustainable growth. I suspect Sterling will bounce in later trade. The GDP numbers are due to be published at 08:30 GMT. Before that we get the German IFO business climate index and that should reflect a small scale decline in optimism. We will also get some money supply data from the EU. Europe has not had a good week but there have been highlights which have sustained the Euro itself.
This afternoon brings the US Durable Goods orders; a key measure of confidence for the US manufacturing industry. The US Dollar made some headway against the Pound yesterday but the Euro - US Dollar exchange rate has fallen through a significant technical level (trend line support which has been in place since mid-2012) which may well leave room for a drop to $1.32 in the weeks ahead. It will depend on where it ends the week but watch this space.
Once we have got all of this out of the way, we are back into another weekend. I just hope we can all cope with the relaxing and chilling.
I will leave you with a story titled 'overreaction'. A four year old boy asked a rather overweight lady in a doughnut shop in Monroe, Connecticut whether she had a baby in her belly. His mother immediately apologised to the woman and she seemed happy with the apology but the store's staff members were outraged' and banned the four year old from their store for being rude. Now, if you step back from that story for just a moment and think it through; I would suggest the staff of the doughnut store are the ones with the problem.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD drops below 1.0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure and trades below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% MoM in February. Resurgent US Dollar demand is adding to the downside in the pair. US data are next in focus.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price bulls keenly await US PCE Price Index on Friday before placing fresh bets
Gold price (XAU/USD) continues with its struggle to make it through the $2,200 mark on Thursday and oscillates in a narrow trading band through the early part of the European session.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
The other terminal rate: How far will policy rates be cut?
Recent communication by the Federal Reserve and the ECB has made it clear that the first cut in official interest rates is coming. Both central banks are saying the same but the ECB communication is more opaque than that of the Fed.