Sterling is ending the week at a two month low against the dollar following a week where little data was released from the UK and little to no Brexit progress has been made in parliament. Expectations were that the Prime Minister would try and get a new deal passed by the House of Commons next week ahead of local elections, but cross party negotiations have stalled reducing the probability that meaningful vote 4 will be proposed before these take place.
The Euro is around a 22 month low against the US Dollar as concerns around the European Economy continues. Low growth and inflation has seen pressure mounting on the ECB to act again in an attempt to kick-start growth. The ECB’s Rehn has today said the Central Bank’s policy may be doubted by the market.
The US Dollar continues to be the major currency of choice this week after some positive economic data and solid demand for the Greenback. Durable goods orders for the previous period were significantly stronger than the market had forecast – 2.7% against 0.8% - and therefore saw a sharp correction.
The Day Ahead
The next focus here will be the Q1 2019 GDP first reading which is out later today.
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