US–China trade talks continue today in London
Daily Currency Update
Sterling softened slightly after labour data showed unemployment ticked up to 4.6% in April (up from 4.5%), with job vacancies falling to their lowest since pre‑COVID, signalling easing pressure in the labour market. We also saw wage growth move to 5.2%, easing inflation fears but weakening sterling’s appeal and ultimately applying mild pressure on GBP/USD below 1.3550.European equities are modestly positive, buoyed by US - China trade talks continuing today in London. With markets watching for a breakthrough on chips and mineral exports. EUR/USD holding around 1.1400, drifting within its 1.1370 - 1.1430 range, with eurozone confidence surveys and Chairman Holzmann’s dove‑leaning ECB commentary in focus.
Key Movers
Across the pond we saw the USD Index holding steady just above 99.00, supported by trade‑talk sentiment and markets awaiting tonight’s big US Treasury 3‑year auction ($58 bn)Global markets will be closely watching the upcoming US–China trade talks taking place in London, as any signs of meaningful progress could act as a catalyst for a broader risk rally across asset classes and trigger significant shifts in foreign exchange flows as investors reposition in anticipation of improved geopolitical and economic stability.
Expected Ranges
- GBP/USD: 1.3403 - 1.3510 ▼
- GBP/EUR: 1.1759 - 1.1872 ▲
- GBP/AUD: 2.069 - 2.0755 ▼
- EUR/USD: 1.1325 - 1.1420 ▼