FX Markets traded rather flat yesterday as G10’s “lacked any firm directional bias on Thursday”. The easing of lockdown restrictions and a drop in new cases and death in the UK has most certainly helped Sterling cap any losses. The Pound will hopefully get another boost we further restrictions are lifted this coming Monday. As of the 17th, pubs, restaurants, bars, and cafés will finally be allowed to serve customers indoors. Cinemas, theatres, museums, and hotels can also reopen amongst other establishments. Following Bank of England Governor Andrew Bailey’s positive comments on re-opening Britain, the outlook for Sterling looks strong.
After dipping below the 1.4010 mark just before midday, Sterling showed impressive resilience to regain most of its losses. GBPUSD opened the day at 1.4051 and closed the session at 1.4045.
GBPEUR also made minor losses in yesterday’s session. Still comfortably above the 1.1600 handle, the pair started the day at 1.1637 and closed at 1.1632
Dollar, bulls were subdued in yesterday’s session as 10-year US Government bonds saw a “modest pullback from the 1.7% threshold”, limiting any aggressive bets from investors. Despite this, EURUSD was still unable to get close the 1.21 handle in the session. The pair opened Wednesday at 1.2074 and closed at 1.2073.
On the data front, at 12:30 is the ECB Monetary Policy meeting, followed by April’s US Retail Sales at 13:30. US Retail Sales are expected at 1%, with a previous of 9.8%. US Industrial Production will then be released at 14:15, followed by the Michigan Consumer Sentiment at 15:00.
