Downward trend set to continue

Over the last couple of days the markets finally saw a breakout from the tight trading range we have experienced over these past few weeks, giving the market something to sell off. Following a run of poor UK eco stats coupled with strong data from the other currency majors, the Pound ultimately reacted and shifted the trend to the downside. Unfortunately for those euro buyers who were holding off on the hopes that the market would improve came away disappointed after sterling Euro rates slipped, leaving us with the lowest trading levels seen this year. The instant drop in rates have brought with it fears that there is now an increased the risk for a continuation of this downward trend.

Thankfully, yesterday we did see a some respite in the way of UK unemployment data which dropped 0.1%. However, the overall picture for the short term at least is looking particularly gloomy. Although we had positive readings for UK average earnings data too, this is still lower than inflation figures so in real terms UK wages are still falling. With a back drop of Brexit negotiations still very much in the headlines this continuation of poor rates could be set to continue.

In other news the Bank of Canada increased their rates for the first time in 7 years from 0.5% to 0.75%. Although the hike was generally expected the Loonie rallied off the back of the rate hike. Great for those the CAD in hand, not the best news for those looking to buy some Canadian Dollars.

Today there isn’t too much to go off in term of eco stats, there has been a selection of Euro zone data out already this morning and this afternoon focuses on a number of reports out for the US with Jobless claims being the most notable at 13:30 followed by a Speech from Janet Yellen at 15:00.