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Quote of the day: “No notes. You speak from deep in your heart. It’s easy” – Manny Pacquiao
May 1st: Currency Markets Highlights
- GBP drops over 1.5% against Euro
- Positive US Data strengthens Greenback against sterling
- EUR/USD reaches 10 week high
- CEO @dan_currency ringside in Vegas. Tweeting highlights? I doubt it!
Yesterday saw Sterling lose over 1.5% percent as GBP/EUR slid from 1.39 to 1.3675 (a three-week low) as the Euro rallied on the back of the biggest two-day jump in German Bund yields since 2011. UK PMI Manufacturing data fell short (51.9 Vs. 54.0) and GBP/EUR dropped further, currently trading at 1.3610.
According to Simon Derrick, Currency Chief at Bank Of New York Mellon, “What you’re seeing right now is a market that is hyper-sensitive to yield spreads, that’s logical because yield spreads have become so miniscule that absolutely anything is creating, relatively speaking, a big shift.”
Sterling didn’t fare much better against the USD, retreating from a two-month high and losing just under 1%. USD buoyed by positive US Data showing signs of a stabilising labour market and momentum building in the economy. Overall, Sterling still finished April with a 3.5% rise against USD – the strongest performance since September 2013 and still over 5% higher than the five-year low of $1.4567 in March, when many were calling Cable down to 1.40. GBP/USD was up slightly on the open, around 1.5385, but UK PMI caused Cable to sell off further to around 1.5315.
With increased volatility in the markets, feel free to reach out to your Personal Currency Concierge today to discuss any requirements you have pending, or log into our dealing platform for LIVE, bookable exchange rate quotes.
Yesterday saw bailout talks develop with Greece proposing its most stringent reform measures since the Syriza government came into office just over a couple months ago.
Athens leaders are still fighting to unlock aid prior to a €750 million payment which is due to the IMF 12th May. This is in addition the €200 million IMF interest payment Greece owe today.
The euro marches on against the USD, hitting fresh 10-week high. EUR/USD gained over 0.8% moving above 1.12 to 1.1250. The single currency is on a four-session winning streak against the greenback. Only late last week it was trading below 1.08.
Have a great bank holiday weekend! If you’re staying up for Mayweather/ Pacquiao, be sure to tweet @dan_currency while you enjoy fight night!
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