Currency News 03.05.2018 - Sterling Struggling

GBP: Sterling struggling

Sterling softened again yesterday as investors priced out the chance of a rate hike in May.

Data showed that Britain’s manufacturing growth hit a 17-month low in April – more evidence that the Bank of England should sit tight.

There was also more trouble in Parliament over Brexit as the Government faced its 9th defeat in the House of Lords. Almost 2 years after Brexit and opinion is divided as ever.

This morning there’s been further evidence that the UK economy is cooling with consumer credit, money supply and mortgage approvals all falling short of expectations.

EUR: Solid performer

A fairly quiet day in Euroland. The Euro gained against most currencies but lost further ground against the resurgent Dollar – against which it is trading near a 3 ½ month low.

We spoke last week of an economic slowdown sweeping through the EU but this morning the numbers out have been solid. French, Italian and German Manufacturing PMIs have pretty much come in as expected. This should bring some confidence back to the Euro.

USD: Momentum takes over

The Fed begins their two-day rate meeting later today. The wise old members should be pleased with the state of the US economy but rates are expected to stay unchanged this month. Will they revise their growth forecast higher?

In other news, geopolitical tensions continue to ease both in relation to North Korea and trade tariffs, which has improved sentiment towards the Dollar. So much so that the Dollar continued to march higher yesterday even though the data released missed the mark. When you’re hot, you’re hot.

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Current rates:

Thursday 3rd May 2018 at 07:30

£1.00 GBP = 1.1345 EURO

£1.00 GBP = 1.3604 USD

£1.00 GBP = 1.8072 AUD

£1.00 GBP = 1.9372 NZD

£1.00 GBP = 1.7476 CAD

£1.00 GBP = 17.1464 ZAR

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