Daily currency update
It’s been a good week for the pound with recent positive news re: trade deals with India and the US being supported by better-than-expected Q1 GDP data seen yesterday. Next week the UK is due to attend its first summit with members of the European Union since Brexit where topics such as security, trade and youth mobility will be discussed. If agreements can be made on these topics and others, then this could support the pound even further as we head into summer. There is little UK data today with Wednesday’s UK CPI reading the next domestic event of note. GBP/USD is back above 1.33 with GBP/EUR heading back to 1.19.
Key movers
The US saw some mixed data yesterday with the Producer Price Index missing forecast. The report which measures wholesale inflation, the amount producers pay for materials to make products fall. Offsetting this was a slightly better than expected Retail Sales reading however with the constant chopping and changing of Donald Trump’s tariffs it is hard to get a gauge of the real underlying health of the US economy at present. Today’s big event will be the monthly University of Michigan Consumer Sentiment survey due at 3pm. EUR/USD is around 1.12.
Expected ranges
GBP/USD: 1.3250 – 1.3360↑
GBP/EUR: 1.1820 – 1.1930↑
EUR/USD: 1.1130 – 1.1265↑
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