EURGBP Hits the Lower Bound of a Broader Range

Cable extends strong fall into second consecutive day, remaining under increased pressure from stronger dollar after upbeat US labor data and relatively hawkish comments from Fed Chair Powell. Fresh extension lower on Monday cracked the floor of near-term range (1.2875/1.2596), with close below here to generate initial reversal signal, which will look for verification on […]

In focus today In the euro area, focus turns to the May PMIs. The economy has started the year on a strong footing with composite PMI above 50 in the past two months. We expect that the service PMIs will remain around the 53 level while the manufacturing sector should rebound slightly to 46, still […]

The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast. Disappointment increased given that exceeding forecasts has become the norm. GDP growth for the […]