Election Results
GBP: The British Pound trades cautiously as the market awaits to see the full results of the UK local elections. These elections are acting as an opinion poll for the Westminster Labour government and have the ability to cause widespread political upheaval which could harm the Pound. However, supporting the Pound, is the potential for rises in the interest rate, bond yields and sticky inflation.
EUR: The Euro traded mixed after new data showed business activity across the Eurozone shrank in April, which put some pressure on the currency. However, improving market confidence helped limit losses. Investors are now watching key data for signs of economic strength or weakness. Comments from European Central Bank officials will also be important, as tougher language on inflation and interest rates could support the Euro.
USD: The US Dollar trades steadily as many in the market await a key piece of data (Non-farm Payrolls) which will help to determine the Federal Reserve’s interest rate decisions. Alongside this, renewed tension in the Strait of Hormuz has restricted optimism for a de-escalation and furthered safe-haven demand which supports the Dollar. Overall, the US Dollar is being determined by key data releases and the situation in the Middle East.
If you would like to discuss your exchange rates, have any questions about the market or would like to learn more about how we could help, please get in touch.
T: +44 203 440 7550 | E: info@spectrumfx.co.uk | W: www.spectrumfx.co.uk
