IFX Market Report: Tuesday 25th May 2021

GBPEUR plummeted back in to the 1.15’s on Monday early morning, and while the pair reclaimed some of its losses on the day, it wasn’t able to finish above the 1.16 mark. It is likely there may be more price action from the pair today with the releases of German GDP and IFO Business Climate. Germany is Europe’s largest economy and all eyes will be on the GDP data, which is forecasted at -3%, with a previous of -3.3%. In regard to Germany’s IFO data it is “likely to bounce alongside other recent sentiment releases and that should filter into data over the coming months with a recent rebound in activity for Europe”.

From the UK the latest Public Sector Net Borrowing data is released today. The figure is forecasted at £-32B for the month of April. Previous figures show that the government borrowed a record £303B in the first full year of the COVID-19 pandemic. However, “The Office for National Statistics (ONS) said that the deficit for the 2020-21 year was £24bn less than what they had originally forecast ahead of the budget”.

In contrast to GBPEUR, Cable remained relatively steady on Monday, closing only 1 pip above where it opened. GBPUSD started the day at 1.4157 and finished at 1.4158.

GBPEUR started the session at 1.1614, but quickly came under pressure and finally closed the day at 1.1587.

EURUSD was also able to make substantial gains on the Monday session, closing above the 1.22 mark. After opening the day at 1.2189 the pair went on to close at 1.2219.

On the data front, from across the pond, in the afternoon CB Consumer Confidence will be released. The figure is forecasted at 119.4 with a previous of 121.7.

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