Market insights

Market Comment - 5th May 2023

Good morning,

The ECB increased their base rate by the expected 0.25% to 3.75%. This didn't cause any volatility. However the rhetoric afterwards from the ECB's press conference caused the Euro to weaken greatly against the Pound.

GBP/EUR is now towards the top of the years range. Throughout the last 5 months there has been a very identifiable range for GBP/EUR. With some Euro specific news such as a speech from the ECB and retail sales numbers out this range could break out today. Especially with the bank holiday in the UK only on Monday this could be the opportunity for the Pound to gain ascension....equally speaking the top of the technical range has been tested 4 times this year and failed so that could lead to another failure.

Sterling to Dollar is a different kettle of fish. The Pound continues to dominate and gain ground against the Greenback. However it's non farm payroll day so anything could happen. Analysts are expecting job growth in April of 179k. Any big deviation either side of that could push Dollar rates. There's also unemployment in the US (3.5% expected) and a speech from a FED member later.

Other than that it's Canadian unemployment numbers that feature in the roster so GBP/CAD to come into play after lunch. Analysts expecting 5.1% unemployment.

Business news has a growing tide of Artificial Intelligence stories featured. So far it's been a mixed bag between positive and negative, and todays story is around the White House pushing for tech companies to take a moral stance on the advancement in this field.

Get your free quote now

Economic calendar

EUR: 09:00 ECB's Frank Elderson Speech

EUR: 10:00 Retail Sales

US: 13:30 Non Farm Payrolls

US: 13:30 Unemployment Rate

CAN: 13:30 Unemployment Rate

US: 18:00 FED's Lisa Cook Speech

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

Our friendly currency experts are here to assist you and guide you through the markets, we offer a first-class service and even an online platform so you can monitor your transaction in real time.

Our business ethos is based on bank beating rates and fantastic customer service, click the link below for a no obligation quotation and see the savings for yourself.

Open a free account

It is free and easy