Daily Currency Update

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Markets await US growth data

GBP - British Pound

Its been a quiet start to the new parliamentary session re: Brexit with little news emanating from the ongoing cross party talks between Conservative and Labour MPs. In the absence of any developments GBP/USD has been forced down hitting a two month low of 1.2870 yesterday before some profit taking saw it retake the 1.29 handle. Dollar strength isn't helping the pound's cause however. GBP/EUR remains relatively elevated as the euro is going through the mill at present with the pair sitting at 1.1585.

Looking ahead Thursday next week sees the latest Bank of England interest rate decision/Inflation Report with warnings over Brexit likely to be issued by BoE Governor, Mark Carney. The UK's tight labour market may at first seem like a positive however it masks a lack of business investment which is affecting productivity. Companies are hiring staff instead of investing in machinery and technology and expect Carney to once again reiterate this point along with the damage a disorderly exit from the EU could do to the economy.

Key Movers

Yesterday saw better than expected Durable Goods Orders from the States with both the overall and core reading (which strips out transportation items) both beating estimates. The positive data did little to move dollar crosses with the likelihood markets are more focused on today's big release, first quarter US growth data due this lunchtime. An annualised 2.2% is predicted, matching the the end of last year however way down on the 4.1% seen in Q2 2018 as the US economy slows.

Yesterdays only other noteworthy news was Spanish unemployment unexpectedly upticked to 14.7% and New Zealand posted a healthier than expected NZD922m trade surplus for March.

From Down Under AUD/USD hit its lowest level (.6986) since February 2016 (Jan flash-crash aside) however has since recovered to around .7030.

Expected Ranges

GBP/USD: 1.2865 - 1.2965 ▲

GBP/EUR: 1.1545 - 1.1630 ▲

GBP/AUD: 1.8305 - 1.8450 ▼

GBP/NZD: 1.9350 - 1.9520 ▼

GBP/CAD: 1.7335 - 1.7470 ▼