Currency News - How will Amber Rudd's resignation affect the Markets

GBP: Rudderless Pound takes a beating

The Pound had a shocker on Friday after GDP figures (economic growth) were the worst since 2012. The dip in the UK economy has caused a real stir in the City, with many analysts now believing the May rate hike is all but cancelled.

The pain could continue today after Home Secretary Amber Rudd has resigned. That’s Teresa May’s 4th Cabinet member to quit in the last 6 months.

EUR: Volatility returns

The Euro has been a bastion of stability for the last 6 months or so, but in recent weeks volatility has returned.

Against Sterling, the Euro has been whipsawing up and down. It’s not been without reason.

Both the UK and the EU have had a raft of poor data in recent weeks. The Bank of England and European Central Bank look to be retreating back to the shadows after threatening to change policy.

If the Euro is to bring back buyers the data needs to improve, but tomorrow there’s a forecast fall in EU and Italian GDP, which won’t help the situation.

USD: A potential spanner in the works

Unlike the UK, the US delivered a solid GDP reading on Friday. At 2.3% annualised, growth in the US is almost double that of the UK.

The main event this week is the US Federal Reserve’s May meeting, which runs over Tuesday and Wednesday. No rate change is expected, but it should offer up clues on future rate rises.

One potential spanner in the works is that four of President Trump’s top advisors head to China later this week for trade negotiations. Trade with China remains a volatile issue.

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Current rates:

Monday 30th April 2018 at 14:50

£1.00 GBP = 1.1385 EURO

£1.00 GBP = 1.3745 USD

£1.00 GBP = 1.8229 AUD

£1.00 GBP = 1.9523 NZD

£1.00 GBP = 1.7654 CAD

£1.00 GBP = 17.0767 ZAR

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