IFX Market Report: Tuesday 8th June 2021

With a light data calendar on Monday, G10 currencies remained somewhat flat as the Pound and Euro made subtle advances on an already shaky US Dollar. This morning a better-than-expected Eurozone GDP Growth Rate reading has done little to inspire any further gains for the Euro, with GBPEUR and EURUSD still trading close to where they opened the day. The QoQ 3rd Est for the Eurozone came in at -0.3%, with a forecast of 0.6%, and a revised figure of -0.6%. Weighing heavy however on the Euro was the release of the German ZEW Economic Sentiment Index, coming in way lower than expected at 79.8. The previous figure was 84.4 and June was forecasted at 86. The ZEW is important as the index measures the level of optimism that analysts have about the expected economic developments over the next 6 months. In fact, the survey covers up to 350 financial and economic analysts. The index is also constructed as the difference between the percentage share of analysts that are optimistic and the percentage of analysts that are pessimistic about the development of the economy.

GBPUSD was able to gain some minor upside on Monday – opening the day at 1.4132 and closing at 1.4166.

GBPEUR also made a gain yesterday, albeit only 1 pip. The pair started the week at 1.1624 and closed at 1.1625

EURUSD, similarly to Cable, was able to make subtle gains on Monday. The pair started at 1.2157 and closed at 1.2186