USD continues gains
Daily Currency Update
GBP weakened against the USD on the economic signs in the United States. Data released by the Conference Board on Tuesday showed that the US Consumer Confidence Index rose to 98.0 in May from 86.0 breaking the almost weeklong win streak of the British Pound and taking the pair down to below the 1.35 mark reversing all the gains from Friday's good data and the uncertainty around the EU-US trade tensions.Following US President Donald Trump's decision to postpone a proposed 50% tax on EU imports until July 9, a fresh feeling of trade hope has given the Euro some support, however that feeling was quickly dashed as 3 of the 4 points of Euro data that came out earlier this morning were below target. German Import Prices missed target coming in 0.3% below, French Consumer Spending at 0.5% below, and French Private Payrolls at -0.1% below target. The single currency is being given some support from the ECB as Robert Holzmann said, the central bank should pause further interest rate cuts until at least September.
Key Movers
The US Dollar continues posting good results with investors and analysts returning from the bank holiday and responding to the de-escalation of US/EU trade tensions. Donald Trump announcing the US and EU had agreed on a series of key meeting dates, improving risk sentiment amongst traders. However, the dollar is still under some pressure as US trade deals with China and the United Kingdom still lack any major breakthroughs and traders eye the upcoming FOMC's most recent meeting minutes, providing in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.Expected Ranges
- GBP/USD: 1.345 - 1.352 ▼
- GBP/EUR: 1.191 - 1.194 ▲
- GBP/AUD: 2.094 - 2.098 ▲
- EUR/USD: 1.133 - 1.13 ▼