Good morning, please see today’s entry to our Daily FX Market Commentary.
The USD lost ground against the GBP considerably during the last two days as a few factors returned buoyancy to the GBPUSD.
A meeting in the US discussed a slightly more negative view of factors that may enable them to commit to their interest rate forecasts. While the UK have adopted a more positive tone. Investors seem to have absorbed some of the risk fears over a potential exit from the European Union – though I think these may well return soon.
Among others, these factors have pushed the currency pair back over some key rates and that helps to gather steam. There are a lot of available data releases at the moment.
Non farm payrolls
And the market is expecting largely positive figures which may cap the gains enjoyed by buyers of USD
The GBPEUR has been far more quiet and for the last two days the rate hasn’t moved a great deal in either direction.
The figures released yesterday for the Eurozone were positive but only slightly. It has meant that with some of the market events for the UK, the net result has been not a lot of change. The strength of the EUR won’t receive direction from any news relating to itself today.
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.