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Euro strength returns - Euro currency news daily

25 May 2017, 12:41 CET
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Euro returns back to strength. The recent gains for the Euro have returned which has seen the single currency break below 1.1600 versus the Pound and push back above 1.1200 against the Greenback. Investors seem to be more confident on the outlook for the Euro, as anti-Euro candidates failed to get elected in both France and the Netherland along with better than expect regional economic data. This has certainly helped recent gains for the single currency as the Trump saga continues and the UK goes through an election, in the build up to the Brexit. GBP/EUR 1.1558 – 09:30am.

No surprises came from Draghi's speech in Madrid yesterday and was the last key release for the EUR this week. Data elsewhere will likely drive EUR crosses through to next week.

US Dollar

Cable opens today within recent ranges. UK data was thin on the ground Wednesday, which left traders and investors looking at the FOMC to offer guidance on movement. To summarise the FED minutes showed that the group are ready to hike interest rates in June and expects to start its QE sell off this year. In the build up to the release US dollar strengthened taking the currency pair as low as 1.2930, but shortly after the meeting, Sterling gained back the losses to trade once again just under 1.3000. The main reason for the US dollar being sold off, uncertainty being cast over the trajectory for rates after June. GBP/USD 1.2998 – 09:30am.

A data-heavy day ahead for the currency pair with high impact data from both sides of the pond. UK second estimate GDP q/q is being released at 9:30am this morning, with a forecast of 0.3% expected. US unemployment claims are this afternoon, at 1:30pm, with an increase on the previous figure 232k expected – 238k forecast.

Aussie and Kiwi Dollars

Pound on the rise this morning versus the Aussie. This is despite gains in the Aussie for the duration of yesterday's session. Markets are possibly reacting to the news this morning that China was downgraded by Moody's for the first time since 1989 taking it from Aa3 to A1. Gains through yesterday, however, would have been supported by the pending interest rate hike in the US. GBP/AUD 1.7379 – 09:30am.

The annual budget release in New Zealand was as much a damp squib as the FOMC meeting minutes. The Pound lost ground against the Kiwi during yesterday's session, reaching a low of 1.8377. This morning, however, Sterling is gaining back, similar in its movement against the Aussie. GBP/NZD 1.8485 – 09:30am.

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