Markets steady ahead of US Retail Sales and PPI data
Written by
Daily Currency Update
GBP/USD has remained rangebound over the past 24 hours as financial markets seemed to shrug off the latest UK GDP figures which saw the economy return to growth in January posting a 0.2% gain m/m after December's 0.1% contraction. With January and February’s Services PMI numbers both showing solid, if unspectacular expansion it looks like the UK economy is set for moderate growth in the first quarter of the year after ending 2023 in a technical recession, we could see a period of consolidation for the pound ahead of Wednesday's inflation data which in turn is a day before the next Bank of England interest rate decision where no cut is all but guaranteed however the commentary from BoE Governor will be pored over for clues as to when it thinks an easing of monetary policy will be warranted. GBP/USD is up to 1.2810 recovering from a low of around 1.2775 seen 24 hours ago. GBP/EUR is up marginally to 1.1710.Key Movers
At 12:30 pm we will have last month’s US Producer Price Index and Retail Sales figures and last week’s Unemployment Claims data. The PPI number will likely gain the most attention given the focus there is on inflation at the moment. It is expected to rise 0.3% m/m with the core reading, which strips out volatile food and energy costs predicted to rise 0.2% m/m. Should these exceed expectations then the likelihood of a June interest rate cut from the Federal Reserve will drop which in turn should lead to some US dollar strength. It's yet another quiet day from the Eurozone with little noteworthy on the agenda. EUR/USD is little changed over the past 24 hours, trading around 1.0940.Expected Ranges
- GBP/USD: 1.2775 - 1.2880 ▲
- GBP/EUR: 1.1680 - 1.1760 ▲
- GBP/AUD: 1.9280 - 1.9445 ▼
- EUR/USD: 1.0890 - 1.0980 ▲