GBP under pressure after weak Construction data! Can BoE meeting save GBP from dropping More?
Despite weaker data yesterday the GBP/EUR rate still managed to make some gains however, all Sterling exchange rates are in the red since this morning after weaker than expected Construction data in April. Due to its low reading traders/analysts are concerned that it may take longer than initially expected for the construction industry to now recover.
There was also a ruling yesterday by a German court that says the European Central Bank's flagship quantitative easing policy is unconstitutionally sound allowed the GBP/EUR rate test a strong resistance level in the €1.15’s but once again struggled to stay there. There is now a 3-month window for this to be rectified, no doubt it will affect the Euro sometime in this time frame
Whilst Boris Johnson had been expected to announce new easing for measures tomorrow at the daily conference, it is expected that a more detailed offering will in fact be made on Sunday after the bank holiday weekend. (No prizes for guessing why he is waiting until Sunday).
Tomorrow is shaping up to be a big day for all Sterling exchange rates, with an early morning meeting from the Bank of England. The meeting will take place at 07:00am and any developments here in terms of guidance offered and any projected forecast for the UK economy could result in a significant shift in exchange rates.
Finally, to the US and the ADP employment report for April will provide an early gauge of Friday’s official labour market data. It is expected to show a huge fall in employment during the month.