In the currency world a day is seen as a long time; this proved to be the case yesterday with sentiment flipped on its head, as the US dollar came under pressure once again. As written in yesterday’s economic update, USD enjoyed some relief through Monday when the US released a much higher than expected PMI figure. Since then, however, risk appetite is back on the table with stock markets in America closing at all time highs. The Dow Jones broke and closed above 30,000 for the first time, with the S&P 500 also ending the day at a record high. This has allowed GBPUSD to make another run for the 1.34 handle and EURUSD to break the 1.19 mark, as well as giving NZDUSD the opportunity to run to over 2-year highs.
Today, Chancellor Rishi Sunak will outline the government’s spending plans for the year ahead. One of the headline packages is to be a £4.6bn plan to aid in the unemployment figure and get the population back into work, following the first Covid outbreak.
The bulk of today’s data releases will come from the US, with manufacturing data and GDP figures released after lunch time in the UK. Any deviation away from analyst expectations and we could see a repeat of USD strength, as seen on Monday.
Have a great day.
Author: Jack Nicholls, Relationship Manager.
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