Currency Note

All eyes on US for latest GDP 

By Sharyh Murray-Francis April 27th, 2023

Today is the calm before the storm on the data front, as economists brace for several high-impact data releases over the course of Friday. The main event for US markets today will be GDP at 1:30pm UK time.

US economic releases will dominate markets this afternoon, with a variety of labour and housing-based data. Initial jobless claims will be released at the same time as GDP and markets will also see the latest pending home sales for the US shortly after.

Both sterling and the euro rallied against the US dollar yesterday gaining just over half a percent and half a percent, respectively. For the single currency, some analysts said dollar buyers saw the best EUR/USD exchange rate in over a year.

It was a different story for European stock markets though, which faced a tough day on Wednesday. The French CAC 40 underperformed, making losses for a third day, while Italian stocks also edged lower for a third consecutive session. The TSE MIB index closed 0.5% lower yesterday.

For equities in London, the benchmark FTSE 100 remained under pressure on Wednesday, as healthcare and industrial sectors offset technology gains.

Tomorrow, all eyes will be on the fourth largest economy in the world, Germany, for its latest GDP figures. We’ll also see the country’s latest unemployment rate and import prices – euro watchers will be keeping their eyes peeled for any knee-jerk reactions from the single currency.

Next week will be a quiet start for UK markets due to the Early May Bank Holiday however, the US will continue to churn out key manufacturing data on Monday.

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GBP: Up next, Nationwide housing prices

The remainder of this week is fairly quiet for UK data releases however, markets will see the latest Nationwide house prices tomorrow morning. The yearly figures are expected to fall by 3.5%, while the monthly numbers are forecast to rise by 0.4%.

GBP/USD over the past year

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EUR: Spain’s unemployment rate climbs

According to the National Statistics Institute (INE), Spanish unemployment for the first quarter of 2023 rose to 13.26%. This follows a climb to 12.87% in the last quarter of 2022 and is above forecasts of 12%.

USD: DXY weakened amid renewed banking fears

The dollar index (DXY) weakened this morning amid recession fears and renewed concerns over the US banking sector.

The return of banking and recession fears means many dollar-watchers will be keeping a close eye on today’s key data for a bigger insight into the country’s economic health.

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