Market Report for 21/05/2018


EURUSD
$
3 MONTH TREND –
Resistance $
Support $
GBPUSD
$
3 MONTH TREND –
Resistance $
Support $
GBPEUR
3 MONTH TREND –
Resistance €
Support €
GBPUSD GBPCHF
GBPEUR GBPAED
GBPJPY GBPSEK
GBPAUD GBPDKK
GBPNZD GBPCZK
GBPSGD GBPHKD
GBPCAD GBPTHB
EURUSD GBPZAR
GBPSAR GBPNOK
The prices shown are “mid-market” exchange rates and are not the rates that you will be offered by Cornhill. Your rate will be determined by the amount of currency that you are buying. Please speak with your dealer for a live quotation.
Another testing week for sterling…
After last week’s trading session, which saw sterling trade almost in limbo, this week holds a number of key tests for the Great British Pound. There are only 72 more days left before the next Bank of England meeting and markets will need to see some glimmer of hope if the pound’s going to have any chance of staging a meaningful reversal.

There are 3 key UK economic releases for GBP exposed clients to be aware of. First and foremost, Wednesday sees the next instalment of inflation data. This report will reflect April’s prices and will need to, as a minimum, maintain its previous levels to keep the Bank of England concerned about leaving rates too low. Anything less than 2.5% year-on-year and participants will likely see this as another opportunity to sell sterling. On Thursday we’ll have another chance to analyse the strength of the British consumer. To end the week we’ll have the second reading on UK Q1 GDP. The Bank of England will need to see a revision higher to the woeful preliminary reading of 0.1%. A revision higher to 0.3% or above and this would be a huge positive for the pound.

Outside of these 3 releases they’ll be an inflation hearing. Carney will once again be quizzed by MPs regarding the current state of inflation in the UK. Nothing in particular is expected from this hearing but if Carney does make any hawkish or dovish comments then we could see sterling react in kind.

EURUSD EURUSD
GBPUSD GBPUSD
GBPEUR GBPEUR

written by Vivek Savani
0203 409 5368

The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information. Cornhill International Payments Limited is a limited company registered in England and Wales. Registered number:6260585. Registered office: 4th Floor, 18 St Swithins Lane, London, EC4N 8AD. Cornhill International Payments Ltd is authorised by the Financial Conduct Authority for the provision of payment services under the Payment Services Regulations 2017 (Reference number: 504494) and supervised by the Financial Conduct Authority under the Money Laundering Regulations 2017.

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