This saw the Pound being sold heavily into the European session but it did make a recovery after stronger CBI Distributive trades realized coming in at -14 vs a forecast of -25. Cable traded with a low of 1.9674 and a high of 1.9820. Today we have already had the GfK NOP consumer confidence come in at an 18 year low of -29 vs -25 forecasted.
Euro (EURO) Another set of weak figures from the Eurozone in the last few days with Consumer Confidence coming in at -15 vs. a forecast of -12 for May. The EUR traded under 1.5500 for the first time in three weeks as German unemployment rose by 4K in May and Retail Sales for April have come in at -1.7%. Overall the EUR/USD traded with a low of 1.5485 and a high of 1.5665 before closing at 1.5515 in the New York session. The Consumer Price Index (CPI) for the Eurozone is expected to come in at 3.5% y/y later this morning.
Dollar (USD) The USD made strong gains across the board yesterday as speculation of bottoming in the US economy focused markets on possible future US rate hikes to counter inflation. US data yesterday came out very close to expectations with Preliminary 1st quarter GDP coming in at 0.9% and jobless claims at 372K. Crude oil prices fluctuated through the day as US crude inventories were down 8.8M and finally closed down $4.32 ending the New York session at $126.71 per barrel. Today there are quite a few figures expected out of the US including Personal Spending, Personal Income, Core PCE price index and Chicago PMI.