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Today's Rates & Market News

Published: 09 Jun 2021

Markets

GDP

The outlook for GBP/USD has improved modestly after Bank of England Chief Economist Andy Haldane suggested Wednesday that the central bank might be closer to tapering its monetary stimulus program than thought previously.

In a radio interview, Haldane said there were already some “pretty punchy pressures on prices”, adding that the UK central bank “could start tightening the tap on that, slowing down the amount of money we’re printing, and ultimately perhaps even starting to turn that around.”

GBP/USD edged ahead on Haldane’s comments before easing back as traders realized that Haldane is due to leave the BoE later this month and is generally seen as hawkish anyway, having voted last month to reduce the size of the Bank’s bond-buying program.

Still, his comments are positive for GBP/USD, albeit it is unlikely to break out of its recent relatively narrow trading range.

 

USD

EUR/USD seems to be stuck in a narrow range despite the upward revision in the Euro-Zone Gross Domestic Product (GDP) report, and the exchange rate may continue to consolidate ahead of the ECB meeting as the central bank appears to be on track to retain the current course for monetary policy.

It appears the ECB is in no rush to switch gears as President Christine Lagarde offered dovish guidance following a Eurogroup meeting from earlier this month, and the Governing Council may continue to support the Euro Area as the monetary union faces a technical recession.

In turn, the ECB may stick to the same script as “the outlook for both growth and inflation remained dependent on the support of fiscal policy measures and the very accommodative monetary policy,” and more of the same from President Lagarde and Co. may spark a bearish reaction in EUR/USD if the Governing Council stays on track to increase its purchases under the pandemic emergency purchase program (PEPP) “at a significantly higher pace than during the first few months of the year.”

Daily FX Market Analysis– 09th June 2021

 

Today’s Rates

GBP>EUR – 1.1638

GBP>USD – 1.4180

EUR>USD – 1.2184

GBP>CAD – 1.7151

GBP>AUD – 1.8304

GBP>SEK – 11.730

GBP>AED – 5.2067

GBP>HKD – 10.999

GBP>ZAR – 19.187

GBP>CHF – 1.2708

 

Today’s Calendar 

·       CAD      BoC Rate Statement

·       CAD      BoC Interest Rate Decision

 

Today’s Highlights

  • GBP/USD bounces toward 1.42 on BOE's taper talk
  • EUR/USD consolidates below 1.2200 amid softer US dollar
  • UK's reopening worries offers an opportunity to buy sterling on EUR/GBP and GBP/AUD – OCBC
  • Gold set to start to outperform silver in the short-term – Credit Suisse

(https://frank-exchange.com/)

 

This document has been prepared solely for information and is not intended as an Inducement concerning the purchase or sale of any financial instrument. By its nature market analysis represents the personal view of the author and no warranty can be, or is, offered as to the accuracy of any such analysis, or that predictions provided in any such analysis will prove to be correct. Should you rely on any analysis, information or report provided as part of the Service it does so entirely at its own risk, and Frank eXchange Limited/Manor House Foreign eXchange Limited accepts no responsibility or liability for any loss or damage you may suffer as a result. Information and opinions have been obtained from sources believed to be reliable, but no representation is made as to their accuracy. No copy of this document can be taken without prior written permission.

 

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John Hall

Firm: Frank eXchange
Country: United Kingdom - England - England

Practice Area: Foreign Exchange

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