Good morning, please see today's entry to our Daily FX Market Commentary.
The GBPUSD played out as we talked about yesterday, in that a little of the upward trend of the Pound vs the Dollar eased during the day.
The USD did overall gain a little bit, but we saw two distinct 'spikes' of strength by the GBP, first before the market opened and then again in the early afternoon. The early afternoon surge was due to some news suggesting there was much less crude oil in stock (actually viewed as a positive thing) which affected the Dollar briefly before resuming the trend of the day.
Today we look forward to some employment data this afternoon, but I suspect this won't change the direction of the currency an awful lot. There are other things afoot...
The EUR made a significant push against the GBP yesterday. High of the day read 1.2760 and slid steadily all the way down to 1.2640 with really no deviation at all.
The confidence surveys produced by the Eurozone yesterday were all negative but for Business Climate confidence. Despite this, the EUR gained strength. Today, though, we are expecting some important news that could move the markets with some potency.
The European Central Bank (ECB) will be announcing their Inflation data which is key to understanding how their economies are performed. And then shortly afterwards we will hear the details of their latest monetary policy meeting, which will provide a complete dialogue on what the economy is doing, where the dangers are and how they will combat them.
The GBP performed exactly as predicted yesterday, but today will prove more of a wild card. There is information expected today that will affect the Pound too.
The list is exhaustive today: Consumer Net lending, British GDP, Total Business Investment, Mortgage Approvals etc. All these are to be produced as I write and so the impact on the GBP will be felt early today.
Ah, here we go. GDP is UP which is great. A few other parts aren't so good. The "overdraft" is larger and there has been less consumer credit and mortgage approvals are up too. The overall impact so far is a spike in the GBP.