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Markets digest the data

Daily Currency Update

Economic data from the US yesterday was mixed, with Unemployment Claims beating expectations while GDP and Pending Home Sales all missed the mark.

US Federal Reserve Chair, Jerome Powell, spoke last night however made no remarks on monetary policy.  There were other FOMC members speaking yesterday including Chicago Fed, President Richard Goolsbee. Among his remarks were that the Fed will return inflation to target but has a chance to do something rare by accomplishing that without recession, while evidence points to the outbreak of inflation in 2021 as largely supply-related.

The USD did experience resistance yesterday against both EUR and GBP as 10-year yields turned lower, EURUSD in the last 24 hours has moved higher by .8% and now back to within touching distance of 1.06.  For GBPUSD, a very similar story where GBP has gained .78% in the last 24 hours against the USD.

Key Movers

This morning has seen German Import Prices and Retail sales figures released, both of which have missed their expected numbers. The EUR although holding steady against the USD this morning, is losing some ground on the GBP following these latest data releases.

In the UK there was very little yesterday from a data perspective, although as mentioned did make some ground on the USD. GDP in the UK rose to 0.6% following a 0.4% prediction, as we now await the markets to digest this data.

Expected Ranges

  • GBP/USD: 1.21959 - 1.22544 ▼
  • GBP/EUR: 1.15408 - 1.15703 ▼
  • GBP/AUD: 1.88869 - 1.90000 ▼
  • EUR/USD: 1.05568 - 1.06108 ▼