Market Comment - 11th May 2022

Posted by Stuart PritchardMay 11, 2022

Good morning,

Yesterdays raft of speeches in the US ended up being fairly predictable. As expected they centred around the cost of living and inflation. This meant there was little or no effect on FX rates.

GBP/USD continues to track sideways at multi year lows for the Pound. With little UK related data out today it's more likely to be the US inflation numbers that could cause a stir. Analysts are predicting 8.1% growth year on year overall and 6% year on year excluding food and and energy. This latter figure aims to remove the day to day items that are subject to volatile moves so gives a more "core" reading.

GBP/EUR remains in a similar sideways tracking malaise. However there appears to be more of an opportunity for recovery in this particular rate based on a technical perspective as the rate is failing to break to the downside.

It could be a good day to convert Euro's to Sterling.

For the Pound, eyes will be firmly on the slew of data out at breakfast time tomorrow in the UK. Headlines are preliminary GDP data, industrial and manufacturing production numbers and the overall trade balance.

Maybe this will be the catalyst for a bit of strength for the Pound.

As ever we look forward to keeping you in the loop and look out for our next update.

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Today’s Economic Calendar

US: 13:30 Inflation Data

UK: Thursday 07:00 Preliminary GDP Data

UK: Thursday 07:00 Manufacturing and Industrial Production

UK: Thursday 07:00 Trade Balance

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