By Simon Eastman
Currency markets, having started off the week positively for the pound, remained flat on Tuesday, trading within a tight range against the euro and US dollar.
EU GDP came out better than expected in the morning, which helped the single currency to start off on the front foot, gaining a quarter cent from the pound but stunted by the German ZEW economic sentiment survey which fell below the consensus by nearly 10 points, falling from the month before, as opposed to the gain expected.
US trade balance and the JOLTS job data (a measure of new job vacancies available), which both beat expectations, helped curb any euro gains against the greenback plus keep cable trading within a 25 point range over the day.
Today could another quiet day for sterling, with no UK data releases at all. We see German trade balance first thing, which could give the euro an early boost, then its across to Canada mid-afternoon, for their interest rate decision and policy statement. Anyone with a Loonie requirement might be worth locking in this morning, ahead of the decision, in case any surprises knock the rates lower.
With some rumours circling yesterday that a 2 week delay is being contemplated by the Government over the June 21st, easing of lockdown, the pound is likely to remain out of favour with the uncertainty, so holding out for any sudden gain could prove costly. Whatever your time scales, give one of the consultants a call today to discuss the options available to you today.