Pound Sterling (GBP)
The ‘remain’ camp suffered a mighty blow yesterday as the latest opinion poll was released, showing a shift towards the UK exiting the EU with 45% voting to leave and 42% voting to stay.
After the release of the poll the Pound suffered, dropping as much as 1.5% during the afternoon.
Markit manufacturing PMI data released this morning showed an increase of 0.7 points, bringing the overall figure to an adequate 50.1. Even though the figure trumped forecasts, the Pound is unlikely to see much of a boost with ‘Brexit’ concerns dominating sentiment.
The OECD also slashed its projected growth forecast to a measly 1.7% leading to the possibility of a once again weakened Pound.
Euro (EUR)
With the latest phone-based poll hinting at the UK voting to leave the EU, the Pound suffered yesterday, falling over a cent against the Euro to a weekly low.
Data published yesterday indicated that Eurozone unemployment is hovering at a tall 10.2% and economists’ forecasts regarding inflation proved accurate; with consumer price pressures staying at -0.1%. This was a slight increase from the previous months’ -0.2% but still a long way from European Central Bank’s 2% target. Consequently the Euro failed to attract buyers following the report.
US Dollar (USD)
Even with a bevy of moderately significant ecostats released in the US yesterday, the latest EU opinion poll has dominated the financial stage.
The Pound dropped over a cent in reaction to the poll; leaving Cable at a weekly low.
American hawks were pleased at the 1.6% personal consumption expenditure print (the Fed’s preferred indicator of inflation) and a sneaky rise of 1% in personal spending.
The doves however, are concerned about a premature rate hike. Consumer confidence shrank 2.1 points and the Chicago business PMI fell from 50.4 to 49.3 giving the doves’ concern some validity.
Canadian Dollar (CAD)
Underwhelming GDP data saw the Pound rally against the ‘Loonie’ at first. Though with the release of the ICM EU opinion poll before the London market closed, GBP/CAD lost its gains and dropped by almost a cent.
Economic growth contracted -0.2% in March according to Statistics Canada, bringing the yearly figure to 1.1%, down from 1.4%.
Australian Dollar (AUD)
Also affected by the recent poll, the Sterling to Australian Dollar exchange rate slumped by over three cents.
The Aussie itself grew stronger thanks to a 0.7% rise in building approvals, beating the worrying expectations of a -6.7% contraction.
The Australian Dollar’s popularity continued to rise after polling data was found to be foreshadowing a ‘Brexit’.
New Zealand Dollar (NZD)
Rising confidence among the business sector and concern for the UK leaving the EU caused by the latest poll saw the Pound slumping a substantial four cent against the ‘Kiwi’ ahead of the release of the UK’s Manufacturing PMI.
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