Muted trading amid mixed markets
Muted trading amid mixed markets
The start of the week has offered mixed moods across the markets with weak macro data in the US and Eurozone, causing the Euro Stoxx 50 to finish flat. However, the S&P 500 registered a modest 0.3% gain on Wall Street after a late rally.
Currency-wise, the main currency pairs operated in very tight ranges yesterday despite Eurozone industrial production falling by 4.1% in March, below the anticipated 2.5%. However, exaggerated multinational trade flows in Ireland appears to have been an explanation. Similarly, the hawkish remarks from a number of Fed officials over the past 24 hours have not impacted the dollar in any significant way. Sterling was holding a slightly firmer tone, but it has since softened overnight.
As we get underway this morning, EUR/GBP is at the 87p mark, GBP/USD is in the top half of the $1.24-1.25 range, and EUR/USD remains in the upper half of the $1.08-1.09 area. UK labour market data has already been released, with the unemployment rate rising to 3.9% in March from 3.8%. Despite this data printing broadly as expected, sterling has been on the back foot in early trading. Later today, US retail sales and industrial production are due, as well as prepared remarks from several central banker officials, both of which are likely to garner some attention from traders.