Monday saw a very subdued trading session with many of the major currencies confined to tight ranges. Both the GBPUSD and GBPEUR pairs held 0.30 cent ranges for the majority of the day. We should see an increase in volatility today with the release of some key eurozone data points.
Across the morning session we have a host of regional reports from across the eurozone with the focus on both GDP and inflation. The numbers will be closely watched due to the recent speculation over the health of the economic bloc. The main country in question will almost certainly be Germany who has been in the press a lot recently. The German economy has seen a significant slowdown of late with the manufacturing sector hit hardest. These figures will likely influence the European Central Bank’s decision in the near future.
Overnight, softer Chinese manufacturing numbers have put markets on the back foot. Trade talks are set to continue imminently with the US. We could be in the final stages of a deal being forged, which would have significant implications for the US dollar and Chinese yuan. Watch this space…
Written by Viv Savani. 8:57am, April 30th 2019
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