• USD to finish for third consecutive week?
• UK retails sales improving
• Germany’s outlook worsening
The USD remained in demand yesterday after better-than-expected US data. First quarter figures for the following all came in higher, GDP at 1.3%, personal consumption at 3.8%, GDP price index at 4.2% and core PCE at 5%. Initial jobless claims for last week also dropped. Money markets continue to fade Fed rate cut expectations with yearend pricing halving from 0.3% worth of cuts to 0.15%. Both GBPUSD and EURUSD remain near 2-month lows.
UK retail sales rose by 0.5% in April showing a recovery in UK spending patterns.
Roll back five months ago and the UK had the worst economic outlook amongst the G-7. That baton has now been handed to Germany, which ultimately will bring into question what this means for the rest of Europe.
USD has softened a little bit this morning as negotiations over the debt ceiling are reportedly moving closer. However, USD could be back in demand later this afternoon should today’s data from the US show inflationary pressures remain. The Core PCE numbers will be the focus and a higher number for April and we should see USD finish higher for the third consecutive week.
Equals Market Analysis– 26th May 2023
Today’s Market Rates
Today’s Interbank Rates at 09:44 am against GBP movement.
GBP>EUR – 1.1519
GBP>USD – 1.2367
EUR>USD – 1.0734
GBP>CAD – 1.6837
GBP>AUD – 1.8979
GBP>SEK – 13.309
GBP>AED – 4.5398
GBP>HKD – 9.6870
GBP>ZAR – 24.387
GBP>CHF – 1.1173
• EUR – ECB Vujcic and Lane
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