April 20th, 2018: Sterling Dumped on Carney Comments
April 20, 2018 9:11 am
Morning Report: 07.00 London
This morning, the British pound is falling further following yesterday’s comments from BOE chairman Mark Carney. A May rate hike now seems increasingly unlikely and the GBP/USD has rapidly erased seven days worth of gains in just three days. In addition, the ‘beast from the East’ storm appears to have had a greater impact on UK retail sales than many previously expected. The EUR/GBP is now set to challenge its highest levels for April as the euro holds firm in the face of general dollar selling. The GBP/JPY slightly higher this morning though in line with other yen pairs.
Strong data has helped the US dollar rally for the last four days, topped by yesterday’s better than expected Philly Fed Manufacturing Index.
The pound wasn’t the only currency in the dollar’s firing lines yesterday. The AUD/USD slumped, while the NZD/USD is down another 0.5% this morning. The Kiwi is now down over 1.5% on the week.
The yen pairs are generally on the front foot this morning, making minor gains, though the damage has been done.
Coming up today
Coming up today, we have UK MPC member Saunders speaking at 10.30.
Buba president Weidmann speaks at 12.30.
At 13.30, we get a slew of Canadian data including CPI and retail sales.
FOMC member Williams speaks at 16.15.
Trade Idea
The euro has held up well recently, while its close neighbours the pound and Swiss franc struggle. The trend is firmly with the latter and this could point to further upside from here.
Morning Report: 07.00 London
This morning, the British pound is falling further following yesterday’s comments from BOE chairman Mark Carney. A May rate hike now seems increasingly unlikely and the GBP/USD has rapidly erased seven days worth of gains in just three days. In addition, the ‘beast from the East’ storm appears to have had a greater impact on UK retail sales than many previously expected. The EUR/GBP is now set to challenge its highest levels for April as the euro holds firm in the face of general dollar selling. The GBP/JPY slightly higher this morning though in line with other yen pairs.
Strong data has helped the US dollar rally for the last four days, topped by yesterday’s better than expected Philly Fed Manufacturing Index.
The pound wasn’t the only currency in the dollar’s firing lines yesterday. The AUD/USD slumped, while the NZD/USD is down another 0.5% this morning. The Kiwi is now down over 1.5% on the week.
The yen pairs are generally on the front foot this morning, making minor gains, though the damage has been done.
Coming up today
Coming up today, we have UK MPC member Saunders speaking at 10.30.
Buba president Weidmann speaks at 12.30.
At 13.30, we get a slew of Canadian data including CPI and retail sales.
FOMC member Williams speaks at 16.15.
Trade Idea
The euro has held up well recently, while its close neighbours the pound and Swiss franc struggle. The trend is firmly with the latter and this could point to further upside from here.
A good way to play this is a HIGHER trade predicting that the EUR/CHF will close above 1.2050 in 14 days for a potential return of 153%.
Related Posts: