Published date: 22 April 2024
GBPEUR
Despite an influx of top-tier economic data for the pound last week, including a higher-than-
expected inflation release which acted to delay expectations for a rate cut, sterling was unable to hold the move higher above 1.1723. Late-week dovish comments from BOE deputy Gov Ramsden smashed the pound into the weekend, further assisted by technical selling as the range observed throughout 2024 was finally broken.
GBPUSD
Whilst employment data and weaker retail sales figures did little to move the sterling last week, mid-week inflation figures showed less of a decline than forecasts. This supported the pound as it delayed the timing of the first-rate cut. Despite all this data, it was BoE deputy Gov Ramsden’s dovish comments late on Friday which drove a sharp move lower.
EURUSD
After large recent downside moves, predicated on divergent summer rate cut trajectories, EURUSD has spent a week consolidating around price support at 1.0635. Despite the dollar reaching ‘overbought’ conditions, it is unlikely to give up recent gains unless inbound data this week misses horribly. In Europe, tomorrow’s PMI data is the main impactful data release.
