GBPUSD a rate to watch as election nears

2 March, 2015

We start the new month, already the last of the first quarter of 2015, reflecting on what has been in many respects an extraordinary start to the year. It all kicked off with the move by the SNB in mid-January which sent shockwaves through the FX markets and then continual toing and froing between Greece and the Troika, a drama that is set to continue throughout 2015. FX volatility has spiked and after an initial rise in equity volatility things have been rather calmer in February. The start to this month seems pale in comparison but the first week of any month is busy with a great deal of economic data for investors to digest. Markets have been slowly pricing in a gradual and subtle shift in interest rate expectations with the Federal Reserve becoming a little more dovish meanwhile the Bank of England has been reacting a little more hawkish to the recent better than expected UK economic data. This has lifted GBPUSD back to the 1.5400 level and is a rate to watch, especially as we near the UK General Election.

Overnight the manufacturing and non-manufacturing PMIs from China have come in just higher than expectations, so this should lend a little support to risk assets. This morning sees all the European and UK releases of the manufacturing PMIs so the euro and sterling should be monitored, in particular the euro as inflation data is also released this morning. Later in the day it is the turn of the US to release their manufacturing data but just before then personal consumption and spending should also be monitored for any signs that US consumers are spending and consuming more.


Source link  
BOJ Monetary Policy Remains Steady

The Bank of Japan maintained their monetary policy on Friday whilst upgrading their assessment of private consumption...

Final Confirmation for a June Rate Hike

The crucial US labour market data for May will be released today, June 2nd at 13:30 BST. It includes non-farm payrolls...

GBP Under Pressure

The Brexit negotiation process is one of the focuses of the upcoming UK election. Although the Conservative Party has pledged a smooth and orderly...


Oil Slumped Post OPEC Extension

On Thursday, OPEC announced that the existing output cut agreement will be extended for an additional 9 months...

USD Bounces From Month Low

Trump administration has presented its 2018 budget plan to Congress last evening. The budget plan calls to slash $3.6 trillion...

Dollar index hit a new low

The dollar index hit a new post presidential election low of 96.95 on Friday May 19th. EUR/USD hit a high of 1.1211...


USD Hit Post Election Low

To date the dollar index has almost given up all of the post presidential election rally...

BoE Expected to Keep Rates Steady

ECB Governor Draghi will make a speech in the Dutch Parliament at 12:00 BST today. It will be Draghi first speech...

Trump's Tax Reform Plan

US Treasury Secretary Mnuchin announced Trump’s tax reform plan in a press conference...

  


Share: