GBP rally muted against peers ahead of US Data

GBP rally muted against peers ahead of US Data

Sinduja Venkat

Good morning and welcome to today’s foreign exchange market commentary on 4th of June. 

Here are’s top 5 currency highlights:

  • GBP muted against peers ahead of US data
  • EUR up despite weak growth indicators
  • US markets lose ground as USD gains
  • Yen will remain weak, say Analysts
  • RBA keeps policy rate unchanged


GBP/EURO – 1.1695
GBP/USD – 1.5305
GBP/CHF – 1.4489
GBP/CAD – 1.5797
GBP/AUD – 1.5819
GBP/ZAR – 14.8592
GBP/JPY – 153.2514
GBP/HKD – 11.8789
GBP/NZD – 1.9041
GBP/SEK – 10.0273


Mid-market rates as of 2013-06-04 11:51 UTC

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

Australia: AUD AiG Performance of Service Index (MAY)
Europe: No Data
United Kingdom:  No Data
New Zealand: No Data
United States of America: USD Trade Balance (APR)
China: No Data
Canada: No Data
Japan: No Data


GBP muted against peers ahead of US data

GBP movement against the greenback appeared to be quiet this morning ahead of US trade data coming up. However the pair managed to hold up in the 1.5300 zone. Steady EUR data helped prop up EUR/GBP rates this morning despite a better than expected Construction PMI outcome. Data movers and shakers that are not expected to impact the GBP in the coming days include the Central banks, BoE and ECB, meetings.

EUR up despite weak growth indicators


The Euro rallied up to 1.3096 despite the Producer Prices in the Euro area declining to an annualized 0.2% in April, indicating its first dip since February 2010. However the short-term rebound in the Euro appears to be dampening ahead of rate cut talks this week.  The European Central Bank (ECB) interest rate decision is likely to be announced this week amid the dwindling economic outlook for the region.

US markets lose ground as USD gains

Tuesday saw a renewed round of rumours on the likelihood of the Fed scaling back its monthly asset purchases in the near future, amongst investors on Tuesday, leading to a general depression in the overall market sentiment. However the greenback gained and managed to gain lost ground from yesterday’s losses. The Dow Jones dipped by 0.56% followed by the Nasdaq, 0.48% and the S&P 500, 0.57%.

Yen will remain weak, say Analysts

Market analysts indicate that Yen’s weakness will continue to persist on trade deficits and went further to comment begins that share prices of Japanese stocks tend to increase demand which is driven by the prospect of improved corporate earnings due to the weaker yen. It is expected that since Japan is running trade deficits, the yen is unlikely to actually witness the levels of appreciation that it has observed in the past.

RBA keeps policy rate unchanged

RBA kept its policy rate unchanged at 2.75%, in line with market expectations. While RBA noted that the current level of the policy rate was sufficient, it indicate that it hasn’t ruled out cutting rates in the coming months. RBA stated that the inflation outlook continues to provide scope for further easing, should that be required to support demand.

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