By Simon Eastman
Yesterday we had a broad range of data across the major sectors with GBP, EUR and USD all moving as a result.
The movements weren’t large but we could see over the course of the day how the EUR-USD see-saw is in play with Sterling benefiting as a result.
The day started with the Euro on the front foot following strong German factory order figures early doors. A 5.6 percent reading compared to last months 1.6 percent gave the Euro an initial rally against the Pound, giving a second day of downside for GBPEUR, having reached 3-month highs on Monday.
With a lack of any UK data yesterday, the Euro continued to gain following positive consumer confidence and producer price index figures all beating expectations. Finally, the EU released its unemployment reading, which again came in lower than last month and the expected 6.4 percent for this month at 6.3 percent. All the above gave the Euro a positive rally against the Pound and the US dollar.
After lunch we saw the tables turn as over the afternoon the US released a raft of data coming in on par or above expectations. This included goods and trade balance of -$29.4B compared to -$58.9B forecast and jobless claims at 208,000 opposed to 210,000. A positive sign ahead of the key non-farm payrolls data due out today.
The result of the data was a swing in the rates, as the stronger Dollar took over, weakening the Euro, pushing GBPEUR up a quarter cent, as well as USDEUR up a quarter cent in the closing hours of European trading. GBPUSD also up and down in a near half cent range.
Today we close off the week with EU retail sales at 10am and then average earnings, unemployment rate, and non-farm payrolls from the US at 1.30pm concluding at 3pm with the Michigan consumer expectations and consumer sentiment indices at 3pm. As we saw yesterday, what happens in the EU and US can influence Sterling so for anyone with a currency requirement in the coming weeks, make sure to keep in touch with your currency consultant here for regular updates and let us help you make your money go further.