EUR and GBP recover against weaker USD
Currency Insights by Halo Financial Founding Director, David Johnson

EUR and GBP recover against weaker USD

The consumer price inflation data for both the UK and EU reflected a slowdown in the pace of inflation but not significant enough change to bring forward any interest rate cuts. That, plus a slightly weakening US dollar allowed both the pound and the euro to advance against the US currency. The USD had gained in the wake of the Iranian missile strikes on Israel and the markets are still very tense as Israel ponders the nature of its response to Iran's aggression. We are unlikely to see the USD significantly weaker well that tension remains. Nonetheless, the?GBP/USD?rate is up to $1.2460 this morning and the?EUR/USD?rate has made it back to $1.0680. The day ahead brings a significant amount of rhetoric from central bankers on both sides of the Atlantic but we will also see the initial jobless claims figures from the US and some housing market data. That will keep tongues wagging and traders busy.

AUD steady after uptick in unemployment rate

The Australian unemployment rate came in at 3.8% in March, up from 3.7% in the previous month but not quite as high as the markets had predicted. There had also been an expectation of a gain of 10,000 jobs in March but the data shows a drop of 6,600 full-time employment roles in the end. These are worrying signs for the Reserve Bank of Australia which is treading that fine line that all central bankers are contending with, between capping inflation whilst trying not to damage the economy. The market reaction to this employment data was rather muted. The?GBP/AUD?rate hit a high of AUD 1.9455 on Tuesday but is back down to AUD 1.9340 this morning. We don't have any further Australian data this week but we will have UK retail sales numbers early tomorrow and the forecasts are relatively strong. If that proves to be accurate, we may find the?GBP/AUD?rate a tad high tomorrow morning.?


Interbank Exchange Rates

Non-tradable rates

Today's Major Economic Releases

12:00 EUR German Buba President Nagel speech?

12:30 USD Initial Jobless Claims(Apr 12)?

12:30 USD Philadelphia Fed Manufacturing Survey(Apr)?

13:05 USD Fed's Bowman speech?

13:15 USD Fed's Williams speech?

14:00 USD Existing Home Sales Change

15:00 USD Fed's Bostic speech?

17:30 EUR ECB's Schnabel speech?

19:30 EUR German Buba President Nagel speech?

21:45 USD Fed's Bostic speech?

23:30 JPY National Consumer Price Index

23:30 JPY National CPI ex Food, Energy



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