26/07/2024
Written by: Ian Morley
Summary:
The EUR continued to decline following the announcement of a snap election in France. The political uncertainty contrast between the UK and the EU continued to push GBPEUR to new 22-month highs. EURUSD remains at a 1-month low.
Speeches:
Market Insight:
This morning’s data indicated that the UK job market is cooling, with the unemployment rate rising to 4.4% and wage pressures in the private sector increasing only by 5.8%, the lowest in two years. This is positive news for the Bank of England, and GBP is slightly lower this morning. The next significant event for GBP will be tomorrow’s GDP figure for April, with expected growth at 0%, down from 0.4% in March. The EUR weakness from yesterday hasn’t persisted overnight during Asian trading hours, but the political risk premium attached to the currency will likely make it vulnerable to sell-offs if there are any negative data points or news articles. USD is staying strong ahead of tomorrow’s CPI and Fed meeting. No major data points are expected today.