US data to hold headlines today
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Daily Currency Update
The Financial Policy Committee announced yesterday morning the minutes of its latest meeting. The statement confirmed that global and geopolitical risks continue to increase and conditions remain challenging. It was also stated that the economic outlook for the UK has improved since the December report, but risks to the stability of the UK financial system have risen. On Wednesday, during his speech at the Economic Club of New York, Federal Open Market Committee (FOMC) member Waller offered some noteworthy quotes. He stated that the possibility of interest rate hikes was very unlikely, but also commented that the economy does not warrant significant rate cuts either. The Federal Reserve has indicated rate cuts this year, but they have not yet specified when they may start. FOMC Waller did not provide additional guidance on this with his comments.GBP/USD remained range-bound between 1.2610 and 1.2640 in yesterday's session but has now fallen below 1.2600 in the past hour. GBP/EUR, on the other hand, is trading within a narrow range, but it is currently positioned towards the higher end of that range. The currency pair is currently trading at 1.16800. Meanwhile, EUR/USD has continued its downward trend and has fallen below 1.0800 at the start of today's session.
Key Movers
US before the Easter bank holiday. Among these releases, the latest GDP results and jobs data are the most significant. The final GDP q/q is expected to remain unchanged at 3.2% from the previous release. The number of unemployment claims is expected to increase from the previous 210k to 212k. The movement of USD will be guided by this release, as well as the end of the month, end of quarter, and end of financial year FX flows. These factors are likely to cause volatility throughout the day.Expected Ranges
- GBP/USD: 1.2580 - 1.2660 ▼
- GBP/EUR: 1.1660 - 1.1710 ▲
- GBP/AUD: 1.9350 - 1.9540 ▲
- EUR/USD: 1.0740 - 1.0850 ▼