Eyes turn to FOMC tomorrow
Tuesday 11 April, 2023
Daily Currency UpdateA number of Bank Holidays were recognized on Friday and Monday for the Easter weekend but despite this, there were key data released from the US on Friday. Better-than-expected jobs data showed average hourly earnings picked up, the unemployment rate fell, and non-farm employment saw an 8k increase month-on-month. GBP/USD had dropped from 1.2450 seen on Friday down to a low of 1.2350 yesterday, but the currency pair has since recovered back up to these highs. A lot of the topsy-turvy movement would have been down to the US-China tensions, where China retaliated over arms support to Taiwan by the US. GBP/EUR has traded within a narrow range, mainly down to the bank holiday weekend. The currency pair has bounced between 1.1380 and 1.1410 since Friday.
The main economic focus will be the release of the euro zone’s February retail sales, which are expected to have fallen 0.8% on the month, an annual drop of 3.5%. This would indicate the pressures of soaring prices were placing on consumers’ disposable income.
Key MoversOutside the European retail sales data, macroeconomic data is thin on the ground today. Eyes will start to turn to key data releases later this week with US CPI and FOMC meeting minutes both due tomorrows. After the jobs data on Friday, this could allow the Federal Reserve room to hike interest rates once more in May, and the focus will be on Wednesday’s inflation data as well as the minutes of the Fed’s March meeting for further clues of the future path of monetary policy. EUR/USD is back above 1.0900 after touching 1.0830 over the bank holiday weekend.
- GBP/USD: 1.2370 - 1.2490 ▲
- GBP/EUR: 1.1380 - 1.1450 ▲
- GBP/AUD: 1.8530 - 1.8820 ▲
- EUR/USD: 1.0830 - 1.0970 ▲