Today sees a comparatively quiet day from a data release perspective, with the exception of US Durable Goods Orders at 1.30pm. (Durable Goods are those planned to last for three years or more, such as motor vehicles and appliances. As those durable products often involve large investments they are sensitive to the US economic situation). If the reading is high this could well strengthen USD further and see GBP/USD threaten the 1.50 mark.
GBP/EUR continues to reflect an increased chance of further stimulus for the UK economy (and an implied reduction in the possibility of an interest rate rise) but with the Eurozone so heavily reliant on German productivity, any negative news regarding the many 'sick dogs' of Europe could cause the Euro to depreciate rapidly. As such the current GBP/EUR levels could represent a good opportunity to sell the Euro.
Posted in Daily Market News on May 30 2014