Good Morning
German Retail Sales were released at 07:00 this morning which showed a year-on-year drop of 0.8% and a month-on-month drop of 1.9%. This has created further pressure on the Euro, and allowed the Pound to maintain a platform above 1.17 – German unemployment data is also due this morning.
For those who keep a keen eye on traditional economic indicators, Eurozone inflation is also due at 10:00. Core inflation has produced frustrating results over the last 12 months, despite a tick up in wage growth. This provides another opportunity for GBPEUR to push higher, alongside EURUSD to dip below this key 1.10 handle.
We are now 10 days away from the general election and opinion polls are revealing a consistent and comfortable lead for the Conservative Party, which carries a net positive gain for the Pound, however we all know how quickly the markets can unwind should there be the slightest element of doubt. We are here to help create a bespoke currency strategy for each of our clients, so please do get in touch.
Have a great weekend.