Good morning, please see today’s entry to our Daily FX Market Commentary.
The USD lost more ground on Friday as the GBP surged back and recovered some of its lost ground from the week before. A range of 1.4115 right through to 1.4245 played out over the day but ebbed back towards the weekend. As I write now, we are exchanging at 1.4140.
A few items of positive and also lack lustre results for the US overall showed that the interest rate rise is more important to investors than jobs data. The unemployment rate was unchanged but the new jobs added in sectors other than agricultural was a very strong figure and the average wage figure disappointed to cap it off.
Today we are not expecting any market moving data from the US, so perhaps it can be a day for the GBP to continue to slowly replace losses.
Not a lot of change in the GBPEUR rate when looking at the overall start and finish to the day, though in the middle of the day there were some losses – only to be put back by the day’s end.
There was no data of particular note on Friday for the Eurozone, and there are some meetings taking place today but no expected results to publish.
During the week, though, perhaps we could see some GBP strength against the EUR as the expectation is that there will be some measures to continue to support the lagging single bloc economy.
There again was no significant data available for the UK on Friday and this is the case again today. The overall focus has been on the potential British exit from the Eurozone and towards factors happening in other markets. The result of the last few days of trading has been a firmer price for the GBP.
Some better results from parts of the UK economy have helped but really for the remainder of this week, there are only a handful of releases left to come so it could be up to the relative strength of other markets to determine the exchange rates.