Home Daily Commentaries US Dollar remains quiet despite positive data

US Dollar remains quiet despite positive data

Daily Currency Update

GBP - British PoundThursday was a fairly muted day for GBP, as the UK economy continues to flourish under the new government guidelines. Analysts predict a strong surge in retail figures and a much needed pick up in the hospitality industry. The UK has lost nearly 2% against the Euro in April, however this may not be the case soon. Euro MPs voted on the British trade deal proposal and overwhelming approved the proposed ideas. There are still some minor concerns over the treatment of Northern Ireland, though with 107 votes for, one against and four abstaining, the official vote looks promising, deadline for which is at the end of the month. News like this should increase the strength of the pound in the short term.

Key Movers

The US economy is certainly picking up again as retail sales come in far better than expected. Its reading of 9.1% came in nearly double of the expected 5.8%. The US Dollar didn't rally as much as expected on the back of the news, yet this will do wonders for investor confidence, as the reading is the largest monthly increase since last May. Some analysts predict that the Fed may be considering a change in their policy outlook for the next few years, with a possible rate cut closer than predicted. The Euro weakened slightly on Thursday as COVID-19 continues to slow down a number of the bloc's largest economies. Germany has seen a rise in New COVID-19 cases, the most since January and vaccine distribution is still behind much of the world. It is expected that 20% of the German public will be vaccinated by the end of April. As the zone continues to vaccinate, we should start seeing an uptick in data releases, followed by the strengthening of the Euro.

Expected Ranges

  • GBP/USD: 1.3680 - 1.3850 ▲
  • GBP/EUR: 1.1380 - 1.1535 ▼
  • GBP/AUD: 1.7675 - 1.7830 ▼
  • GBP/CAD: 1.7130 - 1.7310 ▼