GBP

The latest final Q1 GDP numbers released by the Office of National Statistics showed a larger decline in Q1: -1.6% (-1.5% expected). Although there was little change to the initial release, there were notable improvements seen in the March and April readings, so that largely outweighed the overall Q1 decline in economic activity with a more robust outlook set for Q2 this year. Sterling is relatively unchanged as a result.

USD
The US Dollar hit new weekly highs across a broad range of currencies on Tuesday, particularly against the higher yielders as consumer confidence readings for June beat data expectations. It has been a quiet session overnight as data due today is pretty much low key. Short term, the trend looks positive for the Dollar which has been the case the since the Federal Reserve’s change of tone in their last ’hawkish’ statement. Global stock and indices however are still near to the highs seen for this year.

EUR
The Euro traded either side of 1.1900 during the last 24 hours. Key support comes in at 1.1850, a close below there over the coming sessions would indicate further Euro weakness going forward would be possible. ECB officials have recently tried talking the Euro lower as they remind us that interest rate policy is unlikely to change for some time yet. German unemployment data for June is released at 8.55am (these will not include their football manager yet).