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Daily FX Market Commentary 08/03/2016

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

The USD

The USD lost yet more ground yesterday as the GBP pushed back still more ground. There were some major events happening in the markets but not necessarily linked to the data releases we normally watch for (though the US did have some poor news in the afternoon).

The price of oil has pressed over a key price figure for the first time this year. There are some major movements in the production of oil and essentially limiting it’s production can be seen as a positive thing, especially since we have had such a ‘glut’ of production that has led to the low prices.

The effect has been a rally on US stocks and a push away from US strength as risk leaves the market in early stages. The rate as I write today is 1.4231.

The EUR

Not a lot of change in the GBPEUR rate when looking at the overall start and finish to the day. It seems to be a common theme with the GBPEUR at the moment, and we seem only to be edging up against their currency with slow moves.

Still much is being made of the ‘Brexit’ concerns but this is not having a daily impact on the currency pair, only moving when fresh news is announced.

Expect a day with some more movement than normal today, though, as we wait for the EUR GDP out this morning at 10am. The forecast is showing no change from the last production of this figure

The GBP

The GBP has performed far better in the last week than in the week preceding in terms of relative strength. As you read this, it’s very likely that Bank of England chief, Mark Carney,. will be making a speech. Perhaps he will touch on the measures that the Bank of England has recently discussed in terms of offering extra support, by way of available credit, during the referendum to discuss the UK belonging to the Eurozone.

There is a lack of significant economic data due today but I believe that the Pound could see a reversal of the last few days’ trend, perhaps a day without a lot of movement against the USD but with some changes in the GBPEUR rate.