GBP The UK’s vaccine rollout progress news contrasted with lockdowns across Europe, most recently another one-month lockdown in France. The Financial Conduct Authority are to press ahead with plans to reform rules on blank-cheque companies, Special-Purpose Acquisition Vehicle (SPAC), with the aim of making London more competitive in one of the fastest growing areas in finance.
UK Manufacturing PMI for March showed no change from February’s 57.9 reading as expected. GBPEUR is trading around 1.1732 at the time of writing and the Dollar just below 1.3800. Later today, US ISM Manufacturing PMI data will combine with US traders’ reaction to the recent stimulus proposal and will influence GBPUSD.
Banks are closed for Good Friday and Easter Monday.
Month/quarter-end flows, steady US yields and a supportive tone in the risk universe put the Dollar under some downside pressure soon after hitting new 2021 highs yesterday.
The dollar, however, remains well supported by firm hopes of a strong US economic recovery vs. its G10 peers helped by a solid pace of the vaccination campaign and amidst rising fiscal stimulus and yields trading in multi-month highs.
Later in the US data space, the focus of attention is expected to be around the ISM Manufacturing for the month of March, the final Manufacturing PMI for the same period and usual weekly Claims. In addition, Philly Federal reserve P.Harker is due to speak.
The Euro extends its downside consolidative mode above the 1.1700 into early European trading, as the continued selling takes a breather ahead of a bout of minor economic data due this morning.
Despite a pause in the sell-off, Euro sentiment remains weighed down by the third lockdown imposed in France amid rising COVID-19 cases. French President Emmanuel Macron announced on Wednesday that schools and non-essential shops would close plus a travel restriction would be put in place, across France for the next four weeks.
Looking ahead, we have a busy economic calendar, with the German Retail Sales to grab some attention ahead of the final Euro area Manufacturing PMI readings for March. The Data is not seen as significantly market moving.
As of writing, the Euro currently trades around the 1.1730 mark against its US counterpart.
Data to watch
All Day - All Currencies - Opec-JMMC Meetings
15:00 - USD - ISM Manufacturing PMI
Posted in Daily Market News on Apr 1 2021
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With more than 17 years experience in financial services, Head of Sales Rob guides PLCs and sole traders alike through the complex maze that is the foreign exchange market, helping them to save money and mitigate risk.
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