Skip to content. | Skip to navigation

Personal tools
Sections
You are here: Home topics Foreign Exchange Finally clarity around May's departure - Euro currency news daily

Finally clarity around May's departure - Euro currency news daily

— filed under: , ,

British Pound

Theresa May has just announced the date of her resignation as Prime Minister to be 7 June. The race for her successor to be chosen is likely to be on 10 June, after President Trump's next visit to the UK on 3 June. News from Downing Street suggests that foreign secretary Jeremy Hunt has encouraged May to kill off her Brexit bill, in another blow to her authority as PM. In contrast however, May has indicated that she is willing to modify her most recent Brexit deal.

All eyes now turn to UK retail sales, which came in at 0% m/m, which is 0.3% better than forecast. This positive data offered slight relief for Sterling after a torrid few weeks for the British currency, plummeting to near-2019 lows against a number of its peers.

Key Movers

Escalations in the 10 month US-China trade war are weighing on US consumer and investor confidence, as four Federal Reserve policymakers pointed out on Thursday. Uncertainties surrounding the terms of trade between the world's two largest economies has left businesses unable to effectively forecast for the future and could threaten economic growth in the US.

Additionally, Fed policymakers are unable to make any definitive decisions regarding the future of U.S interest rate hikes. The Trump administration unveiled a $16 billion farm aid package to offset losses from trade war uncertainty.

On Thursday, President Trump predicted a swift end to the trade war despite the lack of high-level talks scheduled between the two economic heavyweights since the last round of negotiations in Washington two weeks ago. Trump also suggested that his administration's blacklisting of Chinese telecom giant Huawei could be used as a vital bargaining chip for the US. Investor's look towards U.S. durable goods orders, expected at 0.1%.

There was more disappointing data from the Eurozone on Thursday as Germany posted lower than expected manufacturing and services PMIs, in a continuation of poor economic data released from the Eurozone's largest economy. European elections continue over the coming days.

Expected Ranges

GBP/USD: 1.2620-1.2785 (up)

GBP/EUR: 1.1295-1.1410 (down)

GBP/AUD: 1.8320-1.8415 (up)

GBP/NZD: 1.9385-1.9495 (up)

GBP/CAD: 1.7005-1.7110 (up)


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