Sterling movement remains muted
Daily Currency Update
According to the latest data released on Tuesday, durable goods orders in the US have increased by 1.4% or $3.7 billion in February, reaching $277.9 billion. The growth was led by transportation equipment, and shipments of manufactured durable goods have also increased. The data has been seen as a positive sign by market participants, although a negative revision to the previous figure has somewhat dampened the release. Later in the day, the US CB consumer confidence report showed that Americans were optimistic about their current situation, but slightly more pessimistic about the future. Despite the numbers falling short of the forecast and the previous figure being revised down, overall confidence has remained steady in March.GBP/USD temporarily broke the 1.2600 level yesterday before midday, but has since dropped to 1.2610. Today, the currency pair started trading at 1.2630. Similarly, EUR/USD also touched 1.0860 before midday yesterday but has now fallen to 1.0830. Meanwhile, GBP/EUR remains relatively stable, trading within a narrow range of 1.1645-1.1665.
Key Movers
There has been some early inflation data this morning. Australian CPI year-on-year showed an increase of 3.4%, which is unchanged from January. The latest release of Flash CPI year-on-year from Spain showed a slight uptick against the forecast, with 3.2% compared to 3.1% expected, and a jump from the previous 2.8%. This outcome beat the 3.6% expectation, but it has caused a headache for the Reserve Bank of Australia as it shows that inflation has become sticky. Today, we are waiting for the UK Financial Policy Committee's minutes and statement. This release is currently considered low-impact data for FX. However, FOMC member Waller is due to speak about monetary policy at the Economic Club of New York, and the audience's questions are expected to have more of an impact.Expected Ranges
- GBP/USD: 1.2600 - 1.2680 ▲
- GBP/EUR: 1.1640 - 1.1680 ▲
- GBP/AUD: 1.9280 - 1.9390 ▲
- EUR/USD: 1.0810 - 2.086 ▲