Tough Day for US Currency
The pound traded within a narrow range against the euro on Wednesday but made decent gains against the US dollar, rising by 0.4%, to end the day just shy of a seven-month high against the US currency.
There were no significant data releases from either side of the Atlantic but the US dollar has come under pressure recently and Thursday’s weakness appears to be a continuation of that trend. Poor US data of late has raised concerns over the health of the US economy and the currency has been struggling as a result. Donald Trump has also had a part to play in this recent dollar weakness, suggesting that the US and China may not reach a trade agreement for at least another year, resulting in a US dollar sell-off.
There are no data releases to note from the UK tomorrow but non-farm payroll numbers from the States will be eagerly anticipated. This release is one of the most important in the economic calendar so we’re likely to see some movement in the Greenback. Any sterling movement will likely be the result of any election speculation.
GBP/USD is trading in the mid-1.31’s and GBP/EUR is sitting in the mid-1.18’s.