Sterling, the currency is down nearly -3% YTD
The Euro is the winner currency for us when we look at the G-10 currency table
Sterling, the currency is down nearly -3% YTD. The upcoming current account number and final GDP q/q/ data would be watched closely. The Q1 GDP is expected to come in at 0.1% and this would confirm some improvement but for the bank of England, it is more of a consumer spending, mortgage approval, inflation and unemployment story which matters the most. Any weakness in the consumer credit from previous month’s reading of £1.8m would be deemed as an adverse element for the economy. As for the technical analysis, we are looking at the 1.30 level for the GBP-USD pair, and if this support holds, the odds would be skewed in favour of the uptrend. Under that scenario, it may not be any harm to target the level of 1.40 for the GBP-USD pair.
The Euro is the winner currency for us when we look at the G-10 currency table. It spiked against the dollar on the back of the news that the euro leaders have shown a united front. The EU came together and it resolved important issues such as trade and immigration. Together they have sketched a plan which would resolve the root cause of many of the qualms which traders are facing. Investors wanted the EU leaders to come up with an unwavering response to Trump’s protectionism policies and show that they stand together. Italy refused a ship of immigrants recently and that rattled many in the EU. However, the country promised to speed up the migrant process and distribute them evenly.
