Skip to content. | Skip to navigation

Personal tools
You are here: Home topics Foreign Exchange Germany cuts 2019 growth forecast - Euro currency news daily

Germany cuts 2019 growth forecast - Euro currency news daily

— filed under: , ,

British Pound

UK inflation came in slightly below consensus in March, keeping headline CPI below target for the third month running. Posting 1.9% against a forecast of 2% the number just missed the BOE's target of 2% and therefore leaves a cloud over any chance of the central bank increasing interest rates for the foreseeable. With Easter recess in full swing Brexit chatter takes a back seat but fundamentals are still being scrutinised with Brexit to blame. This was evidenced through the release of London House prices posting a drop of 3.8% year on year, the steepest drop since 2009. However, Sterling moves were muted and trade ranges were thin. Today could see some fresh bids for a Pound rally as we have the release of Retail sales at 9.30am.

Key Movers

For the Euro, we had it confirmed officially that Germany has cut its 2019 growth forecast from 1% to 0.5%. Elsewhere, all the European CPI's were in line with forecast so the Euro moves were fairly muted. This morning though we do have some price action, the Euro starts the day on the back foot following the German PMI release. Coming in below forecast it highlights further contraction (fourth month in a row), and places further pressure on the single currency.

The Aussie moved higher against Sterling overnight after a jobs report showed more jobs were added than expected. Its been a strong week for the AUD following the improved Chines data we had earlier in the week and looks to be heading into Easter with the crown for the best performing currency.

USD/CAD traded sideways for most of Wednesday even with a packed fundamental calendar. Canadian CPI remained pegged at 0.7% in March, matching the forecast. Today will be busy on both sides of the border. Canada releases retail sales reports and ADP nonfarm payrolls. In the U.S., in addition to retail sales, we'll get a look at the Philly Fed manufacturing index and unemployment claims.

Expected Ranges

GBP/USD: 1.2950 - 1.3080 (down)

GBP/EUR: 1.1520 - 1.1610 (up)

GBP/AUD: 1.8110 - 1.8290 (down)

GBP/NZD: 1.9310 - 1.9460 (up)

GBP/CAD: 1.7320 - 1.7480 (down)

IMPORTANT: This communication has been prepared by marketing/sales personnel of UKForex Limited [CN:04631395] (trading as OFX) (OFX). This commentary is intended for informational purposes only and does not constitute substantive "research" as that term is defined by applicable regulations. OFX is an online foreign currency exchange money transfer service and does not offer any form of margin or speculative trading facilities; and neither it nor its employees are in the business of providing advice to consumers or investors. The information contained herein does not take into account the financial situation or objectives of any particular person and should not be construed as business or investment advice or investment recommendations. Recipients of this communication should exercise independent judgement and obtain advice from their legal, tax or financial advisors.

OFX has taken every reasonable precaution to ensure that any attachment to this e-mail has been swept for viruses. However, we cannot accept liability for any damage sustained as a result of software viruses and would advise that you carry out your own virus checks before opening any attachment.

OFX | 1st Floor, 85 Gracechurch Street, London, United Kingdom, EC3V 0AA

Document Actions