GBP on wait-and-watch mode prior to US data

GBP on wait-and-watch mode prior to US data

Sinduja Venkat

Good morning and welcome to today’s foreign exchange market commentary on 7th of June. 

Here are MyCurrencyTransfer.com’s top 5 currency highlights:

  • GBP currently on wait-and-watch mode prior to US data
  • EUR trending higher after last night’s lows
  • USD displays mixed reaction to strong payroll data
  • Yen strengthens, pushes USD/JPY lower
  • Canada unemployment declines, fails to boost CAD

CURRENCY RATES OVERVIEW 

GBP/EURO – 1.1742
GBP/USD – 1.5502
GBP/CHF – 1.4488
GBP/CAD – 1.5808
GBP/AUD – 1.6386
GBP/ZAR – 15.4911
GBP/JPY – 150.6127
GBP/HKD – 12.0325
GBP/NZD – 1.9644
GBP/SEK – 10.1995

Mid-market rates as of 2013-06-07 14:05 UTC

Key releases in the next 24 hours that may affect currency date:

Australia: No Data
Europe: EUR German Trade Balance (euros) (APR), EUR German Industrial Production n.s.a. and w.d.a. (YoY) (APR)
United Kingdom:  GBP Visible Trade Balance (Pounds) (APR), GBP Trade Balance Non EU (Pounds) (APR), GBP Total Trade Balance (Pounds) (APR)
New Zealand: No Data
United States of America: USD ADP Employment Change (MAY), USD Factory Orders (APR), USD USD ISM Non-Manufacturing Composite (MAY), USD US Federal Reserve Releases Beige Book, USD Unemployment Rate (MAY), USD Change in Non-farm Payrolls (MAY), USD Change in Private Payrolls (MAY), USD Underemployment Rate (U6) (MAY), USD Average Hourly Earning All Employees (YoY) (MAY), USD Two-Month Payroll Net Revision (MAY), USD Consumer Credit (APR)
China: No Data
Canada: CAD Unemployment Rate (MAY), CAD Net Change in Employment (MAY), CAD Full Time Employment Change (MAY)
Japan: JPY Leading Index (APR P)

GBP currently on wait-and-watch mode prior to US data

GBP is trading on the low today in the region of 1.5565/70, as was the case before US Payrolls data release. The pound continues to decline on Friday after its bullish rally yesterday uplifted it to the when 1.5680 region, only to lose ground leading to its retreat to the present range.

EUR trending higher after last night’s lows

EUR/USD is showing strong signs of bouncing back from an overnight low of 1.3223. However it is increasingly expected that the Euro will witness a bearish trend overall in the coming week owing to both positive US payroll data as well as ECB’s stand on quantitative easing which currently involves cutting rates further to negative.

USD displays mixed reaction to strong payroll data

Employment in the US increased in May beyond the expected figure as indicated by the latest US non-farm payrolls. The data indicates that 175,000 jobs were created in May despite the unemployment rate marginally increasing to 7.6. US shares declined prior to this data release owing to mixed market sentiments also driven by the worry that strong data will cause Fed to scale-back its quantitative easing programme sooner than planned.

Yen strengthens, pushes USD/JPY lower

As witnessed before the release of payroll data in the US, the Yen continued to strengthen, dragging the USD/JPY value down. This pair continues to be pressured after posting a renewed 2-month low of 95.27 ahead of the New York trading session. Overall Asian stocks also traded on the low.

Canada unemployment declines, fails to boost CAD

Rate of unemployment indicated a downward trend in Canada today falling to 7.1% in May, from 7.2% figure posted in April according Statistics Canada. However the CAD’s going price against the USD tumbled in the wake of strong payroll data being released from the US today.

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