Markets Cheerful as Weekend Sets in

capital outlook

GBP/USD is back to 1.3990, GBP/EUR is trading at about 1.2650, with the Sterling higher over the course of Thursday session and the #overnight session in Asia. Sterling is just preparing itself from the lows that we’ve seen.

Maybe we’re seeing the #Sterling bears getting a little bit tired, maybe markets looked to that GDP number yesterday and saw an optimistic figure or maybe it’s just a believe that any opinion polls that are due to be released over the course of the weekend are likely to show the “Remain Camp” have a rather commanding lead as some opinion polls i.e. phone polls have shown in the past couple of weeks as well.

That being said, there’s still obviously a lot of uncertainty around the whole #Brexit situation and that’s going to remain a pressure on Sterling, throughout the course of the campaign.

Yesterday UK #GDP number as I’ve said was 0.5%, and that was within expectations, with some people seeing a risk of a revision lower to 0.4% after poor construction manufacturing data, but that did not materialize. Thank God for the UK #consumer however, as all of that growth came from consumption.

#Net Trade was also negative and we hope that the lower #Pound help stimulate exporters as we move through Q1 and Q2.

Elsewhere, the #G20 meeting in #China have been fairly quiet, with relatively little news flow. Asian markets were a little bit higher this morning, after the Peoples Bank of China Governor, came out to say that there was further room for monetary stimulus by the #Peoples Bank of China i.e. interest rate cuts, reserve ratio cut, those kind of things. Well, that’s not going to happen this weekend, but certainly may happen in the short term.

Elsewhere today, it’s all about inflation and growth. Inflation from Germany as well as those from the United States and the second reading of U.S. GDP for Q4. Markets remain fairly quiet at the moment, as it has been one of those volatile weeks certainly in Sterling, since the global financial crisis and we at #CSFX Research Desk won’t be surprise if most people are quite glad for it to day break.

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