Spectrum FX Daily Report

GBP: The British Pound remains in a confined range against a basket of currencies as investors take time to analyse the latest employment data for three months ending in March. In the current scenario, the situation seems favourable for the BoE to begin reducing interest rates, as price pressures are also consistently softening. However, strong wage growth that is feeding service inflation will continue to remain a major concern for BoE policymakers.

EUR: The Euro found slim movements yesterday as mid-tier data had little effect on the bloc’s single currency. Attention will now shift to the ZEW Survey from the Eurozone and Germany, along with the ECB's Schnabel speech later in the day. Looking forward, European GDP figures for the first quarter are due tomorrow, and markets are expecting growth to hold steady at 0.3%. A weaker than expected outcome could weigh on the Euro.

USD: The U.S. Dollar rose slightly in Asian trade as investors remained biased to the greenback ahead of inflation readings in the coming days. PPI data is due later today, while the more closely-watched consumer price index reading is due tomorrow. Both readings are likely to factor into the outlook for U.S. interest rates, with any signs of sticky U.S. inflation presenting more headwinds for other currencies.

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