Today we will concentrate on the GBP/USD rate to begin with. The Pound has been showing unusual strength versus the Dollar for the last 3 weeks going from strength to strength and now in a favourable position not seen since last October. This appears to be underpinned by comments made by the FED's Jerome Powell when he testified recently. His rhetoric suggested any paying down of relief and perhaps interest rate decisions could take more than a couple of meetings to discuss. Whether this is borne out in practice is yet to be seen but it was seen as dovish comments on the Dollar.
Quick note on the descriptions of markets or comments.
Bullish means a positive stance or a positive move in the markets. If a share price is in an uptrend it's referred to as a bullish trend or if a politician shows strong confidence in a decision he's taking a bullish stance. Bearish basically means the opposite. The belief in a bearish market is that prices will go down.
With respect to financial commentary there's hawkish and dovish. Hawkish would indicate a potential rise in interest rates and it's knock on effect with inflation and employment whereas dovish advocates low interest rates.
The GBP/EUR rate remains locked in the battle to break out although yesterday saw the rate fail marginally again at the recent highs.
Today we have Initial Jobless Claims from the States although the bigger news will be the UK's GDP and Industrial Production numbers out at breakfast tomorrow.
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 Initial Jobless Claims
UK: 07:00 Friday GDP Data and Industrial/Manufacturing Data