Morning Market Update – Pound is in Trouble

So Far

New Zealand ANZ Commodity Price dropped down to -0.2% in April from a previous 0.4%. Australia HIA New Home Sales (MoM) dropped down from a previous value of 0.2% to -1.1%. Australia Exports: 2% (March) versus 1%. Australia Imports went above from a previous value of -5% to 5% in March. Australia Trade Balance dropped down to 3107M in March from a previous 3574M.

The People’s Bank of China (PBOC) set the Yuan midpoint rate at 6.8957 versus Wednesday’s fix of 6.8892. China’s Caixin April Services PMI release came at 51.5 versus 52.2. The headline Caixin China General Services PMI continued to fall in the recent months.

Coming Up

Moving on for the day, we await RBA Governor Philip Lowe’s speech. The AUD remains without any change after the Australian Trade Balance’s dull data. The Switzerland SECO Consumer Climate looks stronger as they are forecasted to be at a positive 3 versus a negative 3. This should see some demand for the Swiss.

Unemployment Change in Spain seems to be taking a huge hit as they are forecasted at -78.2K versus a previous value of -48.6K. However, Markit Services PMI might provide some support with 57.9 versus the previous value of 57.4. The Euro Markit Services PMI remains in line with their previous release.

The pound is in troubled waters as it heads into Consumer Credit at 1.3B versus the previous value of 1.441B. Also, the Mortgage Approvals are not looking good with forecasts at 67.4K versus the previous value of 68.315K.

Greenback’s Trade Balance is forecasted at a negative 44.5B versus -43.6B. The Initial Jobless Claims are looking positive with 247K when compared to 257K. This should see some demand for the greenback and boost them for the day. We end the day with ECB President Draghi’s speech and any comments from him will decide the Euro’s future.
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