Dollar gains before Eurozone growth data
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Daily Currency Update
Some broad dollar strength was seen in the markets yesterday with EUR/USD falling from 1.0870 to around 1.0805 throughout the day. Although there was no clear catalyst for the move it's likely increasing tensions in the Middle East and some jitters ahead of this week's big data releases saw the safe haven dollar sought. Yesterday's main event from the UK was new Chancellor of the Exchequer, Rachel Reeves, unveiling a raft of pay-rise offers for public sector workers including a 22% increase being tabled for junior doctors. Reeves also warned that a £22bn black hole in the UK's finances had been discovered and hinted that tax rises would be coming in the Autumn budget in an effort to balance the books. GBP/USD fell close to 1.28 before stabilising and currently sits at 1.2850 with EUR/USD around 1.0820.Key Movers
Various Eurozone member states are publishing inflation and growth data this morning. France has already published a better than expected second quarter GDP reading showing the economy grew 0.3% compared to the 0.2% estimate. At 10am we have the first estimate for second quarter growth for the bloc as a whole with 0.2% expansion eyed. This afternoon we have the latest Job Opening and Labour Turnover Survey from the US which is expected to show another fall from 8.14m to 8.02m for the month of May. Tomorrow sees a slew of data from around the world including Chinese manufacturing figures, the Bank of Japan interest rate decision, Eurozone CPI before the US Federal Reserve's interest rate decision. As a result today may feel a bit like the calm before the storm.Expected Ranges
- GBP/USD: 1.2800 - 1.2940 ▼
- GBP/EUR: 1.1815 - 1.1915 ▲
- GBP/AUD: 1.9545 - 1.9670 ▲
- EUR/USD: 1.0790 - 1.0900 ▼