Weak Sterling Awaits UK GDP, Gold Poised to Reach Record High
| Action Insight Daily Report 5-10-24 |
Weak Sterling Awaits UK GDP, Gold Poised to Reach Record High |
Sterling remains one of the weakest performers this week, despite lack of strong selling momentum. BoE Chief Economist Huw Pill reaffirmed the market's expectations that the central bank would start to consider interest rate cuts in upcoming meetings. These messages echoed the slight dovish shift noted in yesterday's BoE rate decision. Attention is now shifting towards the upcoming UK GDP data, which will provide crucial insights into the strength of the economic rebound from last year's modest recession. In other developments, Japanese Yen continues to be the weakest overall. But Yen's decline is notably slowing, particularly against Dollar. Swiss Franc is not far behind the Pound, ranking as the third weakest. On the more positive side, New Zealand Dollar stands out as the strongest performer at this moment, finding support from slight improvements in manufacturing data. Euro follows as the second strongest, with the Canadian dollar close behind, which will likely see some volatility with the release of Canada's employment data later today. Dollar and Australian Dollar are positioned in the middle of the pack in terms of performance... |
EUR/GBP Daily Outlook Daily Pivots: (S1) 0.8593; (P) 0.8607; (R1) 0.8623; More... Intraday bias in EUR/GBP stays mildly on the upside at this point, and further rally could be seen to 0.8643 resistance. Firm break there will resume the choppy rebound from 0.8497 low. On the downside, below 0.8585 minor support will argue that rebound from 0.8529 has completed, and larger fall might finally be ready to resume. Intraday bias will be back on the downside for 0.8529 support first. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:30 | NZD | Business NZ PMI Apr | 48.9 | 47.1 | 46.8 | | 23:30 | JPY | Overall Household Spending Y/Y Mar | -1.20% | -2.40% | -0.50% | | 23:50 | JPY | Current Account (JPY) Mar | 2.01T | 2.05T | 1.37T | | 05:00 | JPY | Eco Watchers Survey: Current Apr | 47.4 | 49.8 | | 06:00 | GBP | GDP M/M Mar | 0.10% | 0.10% | | 06:00 | GBP | GDP Q/Q Q1 P | 0.40% | -0.30% | | 06:00 | GBP | Manufacturing Production M/M Mar | -0.50% | 1.20% | | 06:00 | GBP | Manufacturing Production Y/Y Mar | 1.80% | 2.70% | | 06:00 | GBP | Industrial Production M/M Mar | -0.50% | 1.10% | | 06:00 | GBP | Industrial Production Y/Y Mar | 0.30% | 1.40% | | 06:00 | GBP | Goods Trade Balance (GBP) Mar | -14.5B | -14.2B | | 08:00 | EUR | Italy Industrial Output M/M Mar | 0.30% | 0.10% | | 12:30 | CAD | Net Change in Employment Apr | 17.5K | -2.2K | | 12:30 | CAD | Unemployment Rate Apr | 6.20% | 6.10% | | 13:00 | GBP | NIESR GDP Estimate (3M) Apr | 0.40% | | 14:00 | USD | Michigan Consumer Sentiment Index May P | 77 | 77.2 |
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