The Greenback continues a two-day dollar positive rally against the Pound
What’s been happening?
Yesterday saw Sterling drop in the face of disappointing UK retail sales and a dollar rally due to quarter-end flows and a slight pull back in concerns about a trade war. Earlier in the day GBP had made good gains against both the dollar and the euro on the back of a report that Britain is set to look at a new solution for the Irish boarder dispute which is delaying Brexit discussions.
The market also saw GDP released yesterday from the US with the YoY figure revised up to 2.9% growth for Q4 from a previous figure of 2.7%. This supported the greenback and continues a two-day dollar positive rally against the pound.
Across the pond our antipodean friends saw AUD broadly higher against the dollar in early APAC trading due to concerns of a trade now fading. JPY had been one of the major benefactors of this with investors flocking to the safe-haven status of the Yen.
What’s coming up?
We have already seen UK GDP released this morning showing that the UK economy grew by 0.4 in Q4 to Dec and 1.4% YoY for 2017. These figures were in line with market expectations. Today will also see the release of German CPI figures due out at 13:00. Should we see this figure fall inline with expectation it may come as a relief for the euro in the face of selling pressure over the past few days. Other figures out today to keep a watch for are US Core PCE Inflation due out at 13:30.
With the Easter holiday upon us the market will be thinly traded which sometimes produces price opportunity. For more details on how you can take advantage of this, please contact your corporate dealer.