After surprisingly good figures from the UK labour market yesterday, GBP has just fallen off its 2 year high versus USD (1.6615) and 18 month high versus EUR.
With only minor news out today, the next potentially market moving event will be Mark Carney’s (Bank of England Governor) speech at midday tomorrow. No doubt he will be under pressure to discuss whether the interest rate policy will indeed be reviewed if/when we hit 7% unemployment in the UK - which looks more imminent than previously expected.
With one eye on next week, we have the US Fed policy meeting, FOMC, when the market expects to see another tranche of stimulus removed from the policy. How much is removed will determine how much strength USD can muster and indeed if it is enough to counteract the natural selling of USD when global economic data is broadly positive.
Posted in Daily Market News on May 30 2014