UK in focus – and no, it’s not Brexit

April 16, 2019

Quite a busy Tuesday coming up for markets, with the UK once again in focus.

The EURUSD steadied itself yesterday after the gains made on Friday. The pair opened at $1.13021 and climbed throughout the first half of the day, hitting highs of $1.13201. The euro began a slow decline shortly after reaching that high, falling to a low of $1.12963 a few hours later. It has come off those lows and is currently trading at $1.13016. The GBPUSD made some modest gains overnight, breaking back into $1.31 territory. The pair opened at $1.30706 and dipped to an opening-hour low of $1.30664. The pound rallied off that low, peaking at $1.31184 late in the day. It has come off those highs and is currently trading at $1.30989.

The Dow was quite flat overnight, weighed down by earnings misses from several top US corporations. The index opened at 26,412.48 and traded in a tight range throughout early and mid-session trading, peaking at 26,474.22. The slide began shortly afterwards with the Dow falling to a low of 26,311.60 late in the day. it has come off those lows and is currently trading at 26,398.05. The Dax took a breather after the strong rallied witnessed on Friday. The German index opened at 12,039.27 and slid to a low of 11,995.61 a few hours later. It bounced off those lows, climbing to a high of 12,047.79 a couple of hours later. It came off those highs and closed at 12,034.53.

The day ahead looks set to be a busy one, with a host of data set for release. Attention turns to the UK, where economic data dominates market interest, much to the relief of beleaguered Brexit PM Theresa May. The most significant piece of data is the Average Earnings Index, which indicates wage growth in the economy. Wages are expected to grow by 3.5%, compared to 3.4% at the last reading.

Other data released today and the early hours of tomorrow morning includes:


Japan – Trade Balance

Australia – Monetary Policy Meeting Minutes

UK – Unemployment Rate, Claimant Count Change

Canada – Manufacturing Sales, Foreign Securities Purchases

Europe – European & German ZEW Economic Sentiment

US – Industrial Production, Capacity Utilisation Rate, NAHB Housing Market Index


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