Currency Update - 6th June 2018

GBP: Sterling gets a much-needed boost

Sterling jumped yesterday after the latest PMI Survey of the dominant Services sector rose to a 3-month high.

That means all three PMIs – manufacturing, construction and services – beat estimates in May. It’s some much-needed good news for Sterling.

The next big test will be on Friday when the Bank of England’s 12-month inflation forecast is due for release.

EUR: Euro gets surprise lift

The Euro steadied yesterday after Italian Prime Minister, Giuseppe Conte, made it clear to Parliament that the government had never considered leaving the Eurozone. The reassurance has helped investors shift their attention to next week’s European Central Bank's (ECBs) policy meeting.

Here’s the surprise bit of news. According to Bloomberg, the ECB is considering using this month’s meeting to announce an end date to its quantitative easing programme. If true, that would be very positive for the Euro.

The rumour has caught investors off guard as it was thought the Italian political crisis and threat of global trade wars would keep the timid ECB from doing anything of consequence.

USD: A cloud hangs over the Dollar

The Dollar gave up some of its recent gains yesterday, in part due to the strength of the Pound and Euro – which both had good sessions (as noted above).

There also remains a cloud hanging over the Dollar given the escalating tension over trade tariffs. Will the upcoming G7 summit in Canada bring calm or chaos? Best ask President Trump.

Thanks For Reading, What Next?

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Current rates:

Wednesday 6th June 2018 at 15:30

£1.00 GBP = 1.1398 EURO

£1.00 GBP = 1.3428 USD

£1.00 GBP = 1.7505 AUD

£1.00 GBP = 1.9063 NZD

£1.00 GBP = 1.7299 CAD

£1.00 GBP = 17.0463 ZAR

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