Kantox currency update: markets steady ahead of the French elections
The major currencies remained little moved on Thursday, with the euro and the pound steady below recent highs, in spite of the terrorist attack in Paris, as investors focus on the first round of the French presidential elections this weekend.
EUR/USD: consolidating above 1.0700. The euro stretched higher on Thursday, to hit a fresh 3-week high at 1.0775, before returning to levels near 1.0700. At London market opening times, the EUR/USD is trading at 1.0720.
GBP/USD: moving sideways around 1.2800. The pound traded within an 80-pips range both sides of 1.2800 for the second consecutive day, after having hit 6, ½ month highs at 1.2900 earlier this week. At London market opening times, the GBP/USD is trading at 1.2805.
USD/JPY: advances above 109.00. The dollar ticked up again on Thursday, extending its recovery from Monday’s low at 108.15 to one-week highs at 109.45. At London market opening times, the USD/JPY is trading at 109.30.
In the Calendar Today
At 08:00 GMT we will be attentive to the Eurozone Preliminary PMI indexes. Services and manufacturing activity is expected to have remained steady in April.
At 08:30 GMT National statistics will release the UK retail sales, which are expected to have contracted for the third time in four months. A larger than expected decline might have a negative impact in the pound.
08:00 GMT EUR: Markit Manufacturing PMI – Prel. (Apr)
Prev: 56.2 Cons: 56.3
08:00 GMT EUR: Markit Services PMI – Prel. (Apr)
Prev: 56.0 Cons: 55.8
08:00 GMT UK: Retail Sales (MoM) (Mar)
Prev: 1.4% Cons: -0.2%