No stopping sterling

26 May, 2016

There seems to be no stopping sterling right now. It was the strongest performer on the majors last week and is standing out by a comfortable margin once again this week. Most of this has come about on the belief that the ‘remain’ campaign is pushing ahead, both in the polls and also in the wider sphere, ahead of the EU referendum next month. The proportion of those who still say that they don’t know how they are going to vote remains too large for the market to think that the result is a done deal, so there is certainly some scope for further volatility ahead. We could also be looking very closely at the weather to determine the impact on turnout nearer the time. For now, cable sees the next resistance level at 1.4770, the 3rd May high. The second reading of UK Q1 GDP is seen at 08:30 GMT, where there are some residual risks for a downward revision from the initial 0.4% QoQ reading.

The remainder of the week is focused on the G7 leaders meeting taking place in Japan. The impression given at the meeting of finance ministers and central bank governors over the last weekend was that it was Japan and the yen who were likely to be more the point of tension, more so that the usual whipping boy of China. The yen has been cautious in the run-up to the meeting, but if there is nothing of substance on exchange rates, then there is scope to rally as one of the near-term risk road-blocks is removed.


Source link  
All Eyes on Central Banks

Markets were, for the most part, little changed on Wednesday as traders waited for today’s Bank of Japan and ECB rate decisions. Earlier today...

Dollar Bears

UK Consumer Price Index (CPI) data was released on Tuesday showing inflation easing for the first time in nearly 10 months, retreating from the near 4-year high touched in May...

More Record Highs for Equities?

Early indications from Asia this morning are pointing towards a strong day for global equities, continuing the momentum from last week...


US Data brings on USD bulls

U.S. job growth surged more than expected in June and employers increased hours for workers, with signs of a labor market strengthening that is likely...

Biggest Quarterly Drop in 7 Years

USD recovered marginally on Friday, but had its biggest quarterly decline against several currencies in nearly 7 years following hawkish signals...

Markets look to Central Bankers

Asian Equities traded higher on Tuesday approaching near two-year highs on Tuesday as USD strength helped exporters...


Global Economic Optimism Continues

Global equities moved higher on Monday as optimism continued to improve on global economic growth. However, USD...

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...

  


Share: