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Daily FX Market Commentary 02/03/2016

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Good morning, please see today’s entry to our Daily FX Market Commentary.

The USD

The GBP has shown some signs of pressing back and holding off further advances from the strength of the USD. Yesterday the GBPUSD saw a low of 1.3918 and a high of 1.4010 and right now I have a rate of 1.3956.

This despite the US producing positive economic data yesterday, showing that there are some value buyers of the GBP supporting the exchange rate and resisting the stronger USD.

Today there is not a great deal of information to come from the States so we will look at: prevailing trends for guidance and other currency related news. I am not expecting a great deal of movement in the GBPUSD today, personally.

The EUR

The Euro fell back gently but steadily against the Pound. The GBPEUR rate climbed from 1.2800 to 1.2885 at one point and ended the day up trading around the 1.2850 mark. At the moment we are showing 1.2832.

Actually, there were some shoots of better news from the Eurozone. The unemployment rate fell a bit and the manufacturing industry throughout the currency bloc improved slightly. Any news of improvements to core economic data in the Eurozone will be welcomed by them.

Today on the wires we look out for a key figure in Producer Price Index, which is the change in prices paid by producers of commodities. A negative figure for the EUR would likely get some movement in the exchange rate.

The GBP

Only some data regarding the manufacturing industry was of note for the UK economy yesterday and it showed that the growth in the industry has shrunken. However, the GBP seems to have found support with buyers, helping it to remain resistant to further losses.

We are to receive the Purchasing Managers Index for the construction industry today which measures their business conditions.The forecast is for this to remain unchanged.

There appears to be some respite for the GBP this week as it recovers from the battering we saw during last week and there is little reason to think today would be too much different from yesterday.